T2W Trading Community

Now, we look at the $TICK chart, at 3:25pm, the $TICK moves into positive reading.

Figure 3.

We look at the stock and see what it’s doing.

Figure 4.

At 3:25pm on RIMM chart, the stock has been retracing from its downtrend, a pullback entry is imminent. When the $TICK finally turned down toward a negative reading, around 3:26 or 3:27pm.

Figure 5.

With the confirmation of the price action, breaking the low of the previous bar at 3:29pm, a short entry is taken (red down arrow in figure 5).

TICK indicator is a very useful is used properly because it takes time and experience to know use it with price action. Many times, the TICK will divert from price action of the individual stocks or instruments. Knowing what to do when they diverge can prevent losses from occurring. Practice and screen time is that is needed to become profitable with it.