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Is it common to see TICK's trade above zero during the entire trading session? I have been watching it closely the last few trading days and it seems to be the norm. Also, how do you judge whether the TICK will spend their time above zero or below zero prior to the trading day? |
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Predicting the TICK's prior to the trading would be too magical. In fact, I will pay good money for a TICK forecasting tool.
The majority of the time, the TICK will spend time above and below zero fairly equally. Last week was definitely not the norm but the exception. We had higher value placement every single day of the week keeping the TICK's strong. In general, even on a downtrending day the TICK will rotate above and below the zero line. This is normal TICK behavior.
One way to predict the TICK is by watching it in the morning session. If TICK's trade above zero over 90% of the time in the morning session, expect to see similar behavior in the afternoon session. Also, another method I use in prediciting the TICK is to bracket the highs and lows. Whenever there is a breakout of the TICK range, you can expect a shift in market sentiment. For example, let's say the TICK was trading between +600 and -600 for the last 2 hours. If the TICK makes a new high at +1000, there is a high probability of a shift in market sentiment. The TICK's may start to spend more time above zero. Hope this helps.