Intra day direction of the Dow

Naz

Experienced member
1,391 22
The $TICK is one of the most reliable gauges available to the intraday trader.It measures the number of NYSE stocks currently trading on an uptick(rising)against the the number of stocks trading on a downtick(declining).

An uptick is a transaction executed at a higher price than the previous transaction,while a down tick is the sale of a security at a price below the preeceeding sale.

eg, a $TICK reading of +400 would show that the number of stocks currently trading on an uptick outnumber those trading on a downtick by 400.Cosequently a reading of -400 would show the reverse.

The $TICK shows the level of buying and selling in the market moment by moment and gives an instant snapshot of who's dominating the action.

$TICK readings between -300 and +300 indicate a neutral market conditions.

$TICK readings near -1000 indicates an excessive bearishness which is commonly followed by a reversal.

$TICK readings near +1000 indicates excessive bullishness which is often followed by a reversal.

IT was interesting to note that on FRI 9th Sep the $TICK made lows throughout the day of -700.However the low of the day occured whenwhen the $TICK ran quickly down to -1000 quickly consolidated and ran up to zero.This was the only time of the day that this happened.

Level 2 traders should have $TICK as part of their graphics package.
 
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