The NYSE TICK ($TICK) is the set out of stocks trading on upticks minus the set out trading on downticks on a high frequency basis. (It's updated nearly every 2nd on my platform). It's a sensitive mensurate of marketplace forcefulness in addition to weakness, because it captures the residue betwixt stocks trading strongly (on upticks) or weakly (on downticks) throughout the day. Very oftentimes we'll run into diminished buying ahead of marketplace tops in addition to vice versa--a useful heads up.
Another agency of looking at the information is to hold out yesteryear along a running full of upticks vs. downticks through the day, like to an advance/decline line. So we're adding the $TICK readings over fourth dimension in addition to observing changes inward buying in addition to selling from the direction in addition to gradient of the resulting line.
Above nosotros tin post away run into the Cumulative TICK draw of piece of job for yesterday, Jan 24, 2017. Notice how, early on inward the session, nosotros started amongst buying involvement in addition to steadily moved higher through the day. In other words, buying involvement was dominating selling involvement correct out of the gate. Seeing that lopsided demand/supply province of affairs provides us amongst useful information to ensure nosotros remain on the correct side of the market.
Our labor every bit traders is to read marketplace patterns in addition to brand decisions accordingly. Our labor is non to impose our frameworks on markets in addition to merchandise inward ways that gibe our theories (and that volition brand us human face smart). Are you lot next the market, or are you lot expecting the marketplace to follow you? Very often, that's the departure betwixt successful in addition to unsuccessful trading.
Further Reading: Tracking the Market amongst US of America TICK
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