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Monday, July 23, 2012

Chart TICK (Short-term Trading Index)

TICK can be added to many Telemet Orion Charts through the Lower Indicators menu within Options.  Simply select TICK from the drop down menu. 
This is a short-term breadth indicator that provides an instantaneous measure of market strength based upon price movement of individual issues. At any moment during the trading day, TICK can be computed for a particular market by subtracting the total number of downtick trades from the total number of uptick trades. Positive (negative) indicator values are generally considered bullish (bearish), but extreme values can signal imminent trend reversals. TICK can be applied to end of day data, but its intraday applications are more commonly used.
Interpretation: Buy (sell) when TICK enters positive (negative) territory.  Look for extremely high or low indicator values to signal price trend reversals.


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