Info!! The Dow Tick ($Ticki): Identifying Pullbacks Inward A Marketplace Trend

NYSE TICK equally a trading tool. As I noted inwards As I noted inwards an before post, the Dow TICK is sensitive to programme trading, because the Dow stocks are frequent constituents of baskets of stocks. This creates an interesting dynamic betwixt $TICKI together with $TICK. We tin accept situations inwards which at that topographic point is programme selling of large cap issues, for example, exactly potent underlying need for stocks overall. That was indeed the instance inwards today's market. As the nautical chart inwards a higher house depicts, the Cumulative TICKI (a cumulative draw of piece of occupation of the 1 infinitesimal H+L+C values) danced inwards a higher house together with below the naught draw of piece of occupation during the kickoff business office of the day's trade, fifty-fifty equally the Cumulative TICK was inwards a potent uptrend.

What that tells us, equally a rule, is that programme trading is express together with cannot drag downwards the wide gain of stocks. In such an environment, pullbacks inwards Cumulative TICKI that hap at successively higher Cumulative TICK levels (and successively higher ES prices) ofttimes are corking entries to follow the trend. You're letting the temporary programme selling deed the marketplace lower to laissez passer on you lot a improve entry on the long side. The opposite is truthful during marketplace declines: bounces inwards TICKI inwards a weak Cumulative TICK together with toll marketplace ofttimes supply first-class entries for shorting together with riding the downtrend.

I abide by that plotting a short-term moving average of TICKI (10 periods on a 1-minute chart) helps filter out the vibrations together with helps traders position whether TICKI is staying generally inwards a higher house or below the naught line. It's the pullbacks together with bounces inwards this moving average line--in the context of overall toll together with TICK forcefulness together with weakness--that tin exercise short-term opportunities for nimble intraday traders.
.