, No matter if you are a day trader seeking that one perfect trade or a scalp trader executing numerous trades throughout the day, the NYSE Tick is one indicator you should have in your trading arsenal. The NYSE Tick is a relatively simple indicator in that it only calculates the number of up ticking stocks opposed to the number of down ticking stocks.
Simple yes, but the information provided can sometimes mean the difference between a successful trade and a Leaked NFL Uniforms losing trade.
On highly volatile Leaked NFL Uniforms trading days, extremes can be reached on the TICK plus 1000 or minus 1000. In most cases when the TICK reaches these extremes such as plus 1000, it can be assumed a pull back in the market is possible since this reading represents an overbought market. Bulls may begin to take profits and bears may jump on to profit by shorting the pull back until the upward trend resumes.
On the other side of the coin, when the TICK is sliding downward into minus 1000 territory, bears have been selling but should consider covering their short positions since this is considered to be oversold territory. Bulls begin snorting as they sense an opportunity to quickly jump in and scalp a few points on a potential bounce.
Although the TICK is a helpful tool for measuring sentiment in the market, it should be used in conjunction with other indicators to alert the Leaked NFL Uniforms trader to possible changes in market direction. Stock and futures traders can usually stay on the right side of the market by combining the TICK with the TRIN as well as keeping one eye on the S&P 500 futures. All three of these will usually give market participants a good idea of internal market sentiment during the trading day.
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