NYSE Tick: A Useful Tool For Day Traders

January 18, 2010 by  

I have received many  questions related to  day trading strategies.  The NYSE Tick, symbol $TICK,  is a short term indicator  used by day traders.   The Tick  is a graphic representation of stocks ticking up minus stocks ticking down on the NYSE.  It is generally used in the 5 or 15 minute real time chart.

The Tick  gives us a  bullish or bearish signal as well as a warning  of an impending reversal.

A Tick reading of  +1000 or higher represents an overbought condition.Therefore, we will be watching for a reversal and would not consider a new long position.

Conversely once the Tick reaches -1000 an oversold condition exists and it would be unwise  to open  a short position.

The symbol for the  Nasdaq Tick is $TICKQ.

Filed under: Ticker Talk
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