[Tradewinds]

• uptick - last transaction is at a higher price than the previous transaction.

• downtick - last transaction is at a lower price than the previous transaction.

• Neutral tick - last transaction is at the same price as the previous one, this is a zero tick.

An uptick for purposes of calculating the $TICK is a transaction at a higher price. But what is an Advancer? I notice that Advancers and Decliners are talked about in terms of ISSUES. I don't know what the difference is between an uptick for the $TICK and an Advancer. They can't be the same, or an uptick minus a downtick would be the same as an Advancer minus a Decliner. But they are not the same. In fact, the $TICK can be going up while the $ADVN - $DECN is going down.

I have searched the internet, but I can't find a definition of what an advancing issue is.

[Tradewinds]

I just found some info about Advancers and Decliners that define an Advancer or Decliner as a stock that is trading higher or lower than the previous CLOSE. So I'm wondering if the difference between an uptick and an advancer is whether there was an actual transaction or not. The price of a stock could go higher without any real transaction, that could be an Advancer. So regardless of whether a particular stock was actually bought or sold, the price could change. But with the $TICK, maybe you can not get an uptick unless there was actually a transaction.

Can anyone verify this, or refute it? Or provide a reference for clarification?

[Tradewinds]

Here is a link to a definition of an uptick:

http://www.investopedia.com/terms/u/uptick.asp

[Tradewinds]

So if an uptick requires an actual transaction, but an advancer does not require an actual transaction, then an increase in the NYSE $TICK could mean that there is REAL buying going on at a higher price, as opposed to a higher price that no-one was willing to buy. The price could be going up, (advancer) but no-one is willing to buy the higher price (NYSE $TICK going down). Demand at the higher prices is drying up, . . . price peaks.

How does that sound for logic? Does that make sense? I'd like to know what people think.

[TimRacette]

While the tick is in reference to only last price, advances and decliners relates to whether or not the stock is + or - on the day.

Another thing to consider when using the tick is that there are multiple ways to get the same tick reading...

For example lets say there is a market with 5 stocks a reading of +2 on the tick could be a result of 2 upticks and 3 unchanged OR 3 upticks, 1 down tick, 1 unchanged tick or 4 upticks and 1 down tick.

For this reason I disregard any tick data less than |400| at 600 I pay attention, 800 is cause for possible action and a 1000 reading on the tick results in direct action (at least for my trading strategy).

If anyone is using thinkorswim I have some cool code I created to highlight these tick readings and also produce a "ding" when a +1000 or -1000 tick reading is produced. I'd be happy to share that code.

~Tim

[Tradewinds]

Originally Posted by TimRacette »

While the tick is in reference to only last price, advances and decliners relates to whether or not the stock is + or - on the day.

~Tim

Yes, I have seen that definition that you are using. I trade intraday, one minute chart, and the advancers and decliners are different on every bar. One thing I have often seen, is that definitions are given in terms of day to day. But it's really an issue of bar to bar. Otherwise, the $ADVN - $DECN on an intraday chart would be the same value all day long. But it isn't. It changes from minute to minute.

[Tradewinds]

Originally Posted by TimRacette »

Another thing to consider when using the tick is that there are multiple ways to get the same tick reading...

For example lets say there is a market with 5 stocks a reading of +2 on the tick could be a result of 2 upticks and 3 unchanged OR 3 upticks, 1 down tick, 1 unchanged tick or 4 upticks and 1 down tick.

For this reason I disregard any tick data less than |400| at 600 I pay attention, 800 is cause for possible action and a 1000 reading on the tick results in direct action (at least for my trading strategy).

~Tim

That's a good point. I'm still not convinced that TICK readings less than 400 should be disregarded though. Personally, I haven't worked through what those lower TICK readings should really mean or not, but I'm leaving some space in my brain cells to be open to some further clarification.

[david22]

here's a good website that defines advancers/decliners, up/down volume:
http://www.marketvolume.com/technica...s/adissues.asp


In regards to advancers vs decliners, its much more accurate to calculate every few
minutes and to take into account the most recent intraday closing price as opposed to last nights
closing price..

Description, Advance Stock:
A Stock is considered advanced if it stock price moved up over a minute. No matter where the stock is in relation to the previous day close, if this stock moves up over a minute it is considered as advanced stock.