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NYSE Tick and Tick Strategies

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by James Okada Lee -  Mar 12, 2007
7.1 (from 7 ratings)

Notice on January 19th, the TICK's spent the majority of the time above zero in the morning session. Also notice the uptrend in price. There is a good chance price will continue its trend which was the case in this example as price continued its uptrend in the afernoon session. When Bullish Tick's occur, you want to stay away from any shorts because you are fighting the trend. This is a great example when you should not be fading a positive TICK reading of +1000 or more.
 
What is a Bearish TICK? A bearish TICK is the exact opposite of a bullish TICK. TICK's spend more time below the zero line. However, a bearish TICK is not as obvious as a Bullish TICK. This is because TICK's tend to trade above and below the zero line even during a downtrend. It is extremely rare to see TICK's trading below the zero line the entire time. Take a look at the chart below.

In this chart notice how the TICK's spend more time trading below zero in the morning session. This indicates bearishness and price declined. In the morning session, if TICK's make a "N" or "M" hook at the zero line and fail to break above zero, this indicates tremendous bearishness.
 
Final Thoughts
These are just some examples of TICK's in action. The best thing for any trader to do before applying it into your trading strategy is to observe, learn, and practice first. After you get used to trading with the TICK's, be creative and start developing more complex strategies using TICK hooks, TICK fades, etc... I combine TICK hooks at pivots. I also have an opening setup that I use combining TICK's and tape. I hope this article gives a brief idea for those new to TICK's or for those who have yet to apply the TICK's into their trading.
 
Happy trading 

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