Info!! Useful Trading Tools - Business Office Five: Dow Ticki

Past posts inwards this serial accept looked at stock marketplace breadth, unique information visualization, volume information, together with the NYSE TICK.  In this adjacent serial post, we'll hold back at the Dow Jones Industrial Average equivalent of the NYSE TICK:  the TICKI.

TICKI represents the publish of Dow xxx shares trading on upticks vs. those trading on downticks at each minute of the trading day.  Its distribution is far noisier than NYSE TICK, every bit the Dow shares merchandise often together with often every bit business office of handbasket trades executed past times institutions.  Indeed, i of my favorite uses of TICKI is to evidence the frequency of extreme values:  +20 or inwards a higher house vs. -20 or below.  For a cracking bulk of Dow stocks to endure upticking or downticking at the same time, at that topographic point must endure baskets of trades hitting the marketplace on the purchase or sell side.  This is a overnice agency of tracking the thought of large marketplace participants.  If nosotros run across many meaning positive readings, nosotros know they are lifting offers together with executing on the purchase side; many meaning negative readings suggests a hitting of bids together with selling pressure.

Because TICKI is together with then noisy inwards its minute to minute readings, I proceed a cumulative amount of the one-minute average high-low-close readings.  That TICKI Sum stair out is depicted above, relative to yesterday's S&P 500 Index (SPY).  What you lot tin forcefulness out run across is a persistent bid to large cap shares through the session, fifty-fifty every bit the NYSE TICK was flattish to downward on the session.  Buy programs inwards the large caps were going off, exactly the buying was non across the wide stock universe.  That was a overnice nation for a mixed market.  It was also why I didn't believe we'd sell off significantly during the 24-hour interval session.

There are many uses of NYSE TICK together with Dow TICKI data.  For instance, real short-term intraday traders tin forcefulness out role pullbacks inwards these measures to tending fourth dimension the execution of purchase together with sell trades.  In an uptrend, you lot desire to purchase pullbacks inwards TICK together with TICKI--especially when you lot run across pullbacks occurring at higher cost levels.  The opposite logic applies to downtrends.  When you lot run across real few meaning high together with depression readings, you lot know that institutional players are non dominant inwards the marketplace together with nosotros are much less probable to accept a volatile, tendency day.

Among the high frequency information available to traders, I discovery the TICK together with TICKI to endure most useful inwards gauging marketplace participation together with sentiment.  Somewhat related information is also establish inwards the Market Delta measure, which I'll endure writing close shortly.

Further Reading:  Dow TICK together with Market Patterns