[Soultrader]

It is always important to look for clues that cause a shift in market sentiment. One method I use is by bracketing a TICK chart. Whenever TICKS breakout of a 2 hour range, this is usually a strong signal of a shift in market sentiment.

For example: In a downtrend, if TICK's make a new 2 hour high I will look for a long setup. In an uptrend, if TICK's make a new 2 hour low I will look for a short setup.

This method also works when the TICK is stuck in a channel. Anytime the TICK breaks out of a channel, expect to see price move in that direction.

[Lisa]

What timeframe TICK chart do you use? Also I noticed in your charts you use mostly a line on close TICK chart. Why is that?

[Soultrader]

Originally Posted by Lisa »

What timeframe TICK chart do you use? Also I noticed in your charts you use mostly a line on close TICK chart. Why is that?

I use a line on close TICK chart primarily for visual purposes. A line on close TICK chart will show me TICK hooks which a candlestick chart will not. However, one disadvantage of using a line on close TICK chart is that you will not see the actual highs and lows produced by candlestick wicks.

I will also use a candlestick TICK chart and will place audio alerts at +1000, +1200, -1000, and -1200 readings. Other than that I do not focus on it as much.

[Lisa]

What exactly is a TICK hook? Also, do you trade soley of the TICK chart? Or do you have certain setups you use with it?

[Soultrader]

Originally Posted by Lisa »

What exactly is a TICK hook? Also, do you trade soley of the TICK chart? Or do you have certain setups you use with it?

Posted a chart up for you. A TICK hook is hard to explain in text format. So I posted a video for you also.

Understanding the TICK VIDEO

[Bfbusa]

A picture is worth a thousand words.

[bmaltz]

The Tick video is no longer available. Can you please repost it?

Thanks,
Ben

[nqcruiser]

Soultrader

Are you referring to $TICK. In any case, can you post a chart from recent price action to demonstrate your idea. If it is $TICK, then u may want to show $SPY as well for divergence. Thanks.