Tick and Trin?

[seancass]

Hello everyone, I need some advice please.

Tick and Trin.

As I understand it, the tick ranges anywhere between
-900 to +900 and is indicative of volatility, i.e. if the tick is a large number towards the +900 mark then a lot of buying is going on. Conversely, if the tick moves downwards on through zero towards the -900 mark there's a lot of selling going on. Have I got this right?

But, what's trin all about please?

Thank you all.

Best wishes,
Sean
seancass

 

[bonsai]

Index developed by Richard Arms.
Ratio of advancing stocks to declining stocks compared to
advancing volume to declining volume.
You need an inverted scale.

Best used as indicator when in trending mode.

 

[mark_m]

TICK can go over +1000 and below -1000. If these levels are being hit regularly over a day or 2 it can be used as an indicator of an overbought (+1000) or oversold (-1000) market.

You can see these in 'action' on the live demo charts on www.quote.com - watch tick and trin change with the price and you get the general idea.

 

[bonsai]

<img src="http://chart.neural.com/servlet/GIFChart?sym1=$trin&cbcku=FFFFFF&cbckl=EBF5FF&cbckd=cccc99&ctxtu=000000&ctxtd=000000&ctxtl=000000&csym1=000099&csym3=000000&cbckg=FFFFFF&cind7a=FF0033&cind7=009900&cind8=blu&cind9=6666CC&avg1=0&avg2=0&height=250&width=450&source=SP&multipane=1&watermark=splogoblue.gif&dres=min&plottype=line&ignore=1220033632&coname=1&image=PNG">

 

[kevinmcm]

[Original author is rufusredcut from ADVFN]

Tick and Trin :

Below are some more articulate descriptions than I can give but I will explain in my own words as their use is fairly straightforward.

You will see Tick and Trin on the top right of the chart. Tick tells us how many stocks are rising against those declining. Anything above 0 is positive and can help with a long position. Below 0 a short is implied. Trin is an equation which takes into account volumes of climbers against decliners. 1 is neutral. Above 1 is negative and helps with a short position and below 1 is positive.

BUT - it has to be put into context of the index. Normally a Tick of 500 and a Trin of 0.5 would indicate taking a long. And a tick of say - 600 and Trin of 2.1 would say sell. The problem is that the indicators do not always say the same thing together. If the Trin reads 1.5 and the index starts rising it could be that the Trin is coming off a reading of above 2 while the Tick was - 600 but is now -100. A buy situation could soon follow.

Tick above 0 = positive. Trin below 1 = positive. [ poss long]

Tick below 0 = negative. Trin above 1 = negative. [poss short]

Remember what is positive and negative and simply watch their readings in relation to the index. I am wary of trading when the two are contradictory as it often means the index is in a tight range.

Kevin.

 

[seancass]

Kevin MCM, Bonsai and marc_m,

Thank you for the explanation. It is much clearer now and I will be able to refer to them with an enhanced knowledge. Many thanks for your trouble.

Best wishes,
Sean
seancass