$TICK divergence

Discussion in 'Technical Analysis' started by bufferman, Jun 3, 2004.

  1. Does anyone here trade with $TICK divergence?
    I have been papertrading it for a week or so with good results.
    For those who do, are there any other indexes you guys look at while daytrading the ES, YM, NQ etc. etc. other than $TICK
  2. I've been dabbling with TICK divergence for a couple of weeks, as a filter for my signals. Have not quite gotten the parameters, etc right yet, but seems to have potential. I basically run a one-minute TICK chart below my ES/YM charts, and watch for divergence, similar to Stochastic or RSI.

    How are you using it?
  3. at tick when it made big move

    or at extremes over 1000

    sometimes it works sometimes it does not
  4. I am using a 5-min $TICK chart under a 5-min ES chart. Works alright. I'd say about 68% good signals.
  5. patoo


    One of the well meaning snake oil types came up with what you are talking about.

    He taught it at seminars. He lost his a$$ and his teachlings a$$ too. He said every time ticks went over +1000, sell.

    There is something to $TICKS, but it is more complicated than what that guru was teaching.
  6. And you know that "something" to $TICK that the guru didn't?
  7. kowboy


    In this case, could you explain what a divergence specifically would be? As in diverging from what other signal? Like diverging meaning that two signals do not agree and are not in correlation?

    What would the trade signals be?

    Thanks for explaining this.

    I use the tick indicator as a secondary confirmation signal and only enter longs if tick is up. But I assume this is not what you mean by divergence.
  8. Consider using the advance decline line rather than $tick. In esignal the symbol is $add.

  9. Here are some simple examples of divergence:
    Price makes a higher high but $TICK makes a lower high. This is a bearish regular divergence.
    Price makes a lower low, but $TICK makes a high low. This is bullish regular divergence.

    Price makes a lower high, but $TICK makes a high high. This is a reverse (or hidden) divergence. An indication of trend continuation.
    Price makes a higher low, but $TICK makes a lower low. This is another reverse divergence. An indication of trend continuation.

    I only look at regular divergence; I rarely bother with reverse divergence.
  10. kowboy


    Do you perhaps have a trade set up with specific conditions, or would one simply watch visually without any specifics?

    Thanks for explaining
    #10     Jun 3, 2004