Market internals - NYSE TICK
The NYSE Tick Index gives us the relationship of stocks up ticking versus down ticking. The Tick is an extremely useful tool for intraday traders.
For Example:
If there are 3000 stocks trading on the NYSE and 1500 trade higher from their previous price and 500 trade lower than their last price the Tick will read +1000. But wait what about the other 1000 stocks? They could be unchanged from their last price.
When using the Tick we are looking for extremes to enter or exit a trade. Tick readings of +1000 or -1000 are considered very strong as we typically trade between 1000 most of the time on the NYSE.
Tips for Using the Tick:
Tick readings within |400| indicate chop, ignore them
On a range day you can look to fade tick extremes
A 1 period moving average can make it easier to see the trend of the Tick
Note the extreme tick readings for the day:
When we get a high tick and a high in price at the exact same time, this could indicate the high of the day.
When a high tick prints without a simultaneous high price we can continue to make new highs, until a new high tick is reached (the reverse is true for a low tick followed by new lows).
For Example:
If there are 3000 stocks trading on the NYSE and 1500 trade higher from their previous price and 500 trade lower than their last price the Tick will read +1000. But wait what about the other 1000 stocks? They could be unchanged from their last price.
When using the Tick we are looking for extremes to enter or exit a trade. Tick readings of +1000 or -1000 are considered very strong as we typically trade between 1000 most of the time on the NYSE.
Tips for Using the Tick:
Tick readings within |400| indicate chop, ignore them
On a range day you can look to fade tick extremes
A 1 period moving average can make it easier to see the trend of the Tick
Note the extreme tick readings for the day:
When we get a high tick and a high in price at the exact same time, this could indicate the high of the day.
When a high tick prints without a simultaneous high price we can continue to make new highs, until a new high tick is reached (the reverse is true for a low tick followed by new lows).
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