[tjnoon]

I enjoyed your Tick article. Thanks. I'm wondering if you know how to apply a tick chart directly onto the price chart. I'm using Tradestation.

I noticed you were using an 800 tick chart with the ER2 and a 1 minute tick chart. I'm curious as to why you chose those time frames.

I read about a strategy where you look for a new high to be put in on a price chart but the tick fails to make a new high which would be a short signal. A long set up would be the opposite. The trader traded the es and had made a custom tick chart comprised of the s&p 500 stocks only. I'd love to know how to set this up but after reading your article I wondered if it would be just as effective a strategy and easier to set up with the regular tick and the er2.

One other strategy that has always facinated me is to watch for the dow to hit it's major resistance or support on a day or hourly chart usually at a big round number. When the tick fails, and hopefully the es gives some leading indication that a reversal is taking place, then you would load up on OEX at the money put options (or calls if dow is failing at support). The strategy calls for $20,000 in options and you would adjust the quantity of options accordingly on every trade. Option expiration week, when the options are priced low, you could wind up with 100 options on a trade for example. Naturally, one might need to build up to a $20,000 per trade level, but if one is good at reading the tick, I can see this as a way to hit consistant home runs.

Any thoughts on those ideas?

TJ