Let's Talk About The TICK'S

[Soultrader]

Some of us here use the TICK as a tool to judge market internals or as part of our trading strategy. The TICK is a very interesting tool in my opinion and I admit I rely on it heavily. It offers me clues on market strength/weakness and any change in market sentiment.

I would like to dicuss the TICK and the different ways traders use this tool to apply it into their trading. As some of you may know, I use the TICK's for several strategies including the opening play, TICK hook's, and fading the range extremes.

Several other strategies can be built from TICK channel breaks or price and TICK divergences.

I remember someone mentioning using the NASDAQ TICK.. how effective is this?

How do you guys use the TICK to build a trading strategy? Please feel free to elaborate on this as I am always interested in hearing more about this tool.

[TinGull]

I'm currently using the Nasdaq TICK to trade ER2...so far so good. I'll still be using it for the following week before I decide if it's too much for my system to handle. I've been using a fairly simple trading system and I find that when i add too much into it, I make bad trades or miss trades. I'll keep you posted though.

[Soultrader]

Hey TinGull,

Do you think the same strategies used on the TICK can be applied to the Nasdaq TICK? I never paid any attention to the Nasdaq TICK so am very curious to see any traders using this tool successfully.

[TinGull]

I would think so...I'm going to do some more studying with it during the days and see what happens. I'll be sure to post accordingly

[namstrader]

I have watched the ER Ticks with a simple bar chart. using 1minute with 2hours data. Through observation of these bars I have noticed a couple of patterns that offer a heads up for a trade setup. I draw trendlines on the Ticks chart and when there appears a 3 point trendline, a good trade seems to follow. Also for possible reversals after these 3pt trendlines trades finish, is a 4th penetration of the 3 point trendline that gives me also a setup trade. I see this same 3 point trendline with cci and rsi as other confirmations.

Tin, if you are trading the ER, why not use the ER Ticks instead of the Nasdaq Ticks? Actually I found that the ER Ticks can be used for the YM. I was always more interested in trading the ER from others, however, after learning that the YM is better to start with from John Carter's book, I changed course of my trading and began trading the YM. I intend to make mistakes and learn on a easier playing field first then head for the ER in the future.

[TinGull]

When you say ER ticks, Im not sure I've got a grasp on what you're looking at. What symbol do you type in? And are you just looking at a bid/ask analysis of whats being traded? if so, then yes, I already use that. That's my main tool. As price diverges from the delta bars I use, then I watch for an entry. The Nasdaq ticks are just 'cause the russell is all small cap, which would correspond better to the nasdaq than nyse tick.

[namstrader]

Russell 2000 tick just like the nyse tick. symbol at scottrade is $RUT/TICK.I

[TinGull]

How can the Russell tick be the same when the russell is not an exchange like the nyse and nasdaq?

[namstrader]

it is same in the respect that it is a ticks chart showing the adv issues vs. the decl issues LIKE the nyse ticks chart. Sorry for the misunderstanding. Yes I know it is not an exchange, but about 6 months ago when I was very interested in the ER2, I began to watch the $RUT/TICK.I.

I was using Sierra charts at the time and they did not a symbol for a ticks chart for the Russell, and I stumbled on a symbol at Scottrade. I am also watching the delta bars closely for enlightenment. At areas upon earlier bars that show large bids or asks over 400, I place a horizontal line to see if support or resistance may occur at these points. Just playing in the sandbox now with market delta.

[TinGull]

Ah. I see. Might as well be an exchange with all the issues that it holds....

Thanks for clearing that up for me!