Using the $TICK for confirmation

Discussion in 'Technical Analysis' started by pitbulltrader, Apr 13, 2006.

  1. PitBull,

    I have had similar problems trying to use the TICK indicator.

    Lately, I have used the 50 and 200 exponential moving average of the TICK close on the 1 min chart for the ES contract to help determine long or short bias in the underlying market. I also use ADX of the ES price chart to help with the strength of that bias.

    In other words, I will use my TICK Indicator as a confirmation of market bias, and the ADX as confirmation of bias strength.

    Charles
     
    #11     Apr 14, 2006
  2. I was just going to let this die but since I went off topic and ran my mouth I cant just walk away. I did misread you and if youve been trading ES succesfully for several years then I should be getting advice from you. These are the patterns I traded this week. Im sure you have seen them hundreds of times but they work very well. I have a binder full of them,
     
    #12     Apr 14, 2006
  3. Tuesday am
     
    #13     Apr 14, 2006
  4. Tuesday #2
     
    #14     Apr 14, 2006
  5. The end of the chart was the entry point. Again I apologize for taking the thread off topic.
     
    #15     Apr 14, 2006
  6. Obviously the first attachment should have been labled Thursday. Holiday has messed me up.
     
    #16     Apr 14, 2006
  7. At least your dog keeps you from overtrading.
     
    #17     Apr 14, 2006
  8. The tick is an excellent indicator when used with other indicators. Most floor traders use it on the NYSE. There are 3 ways to use it. The first is contra trading. When it hits 1000 + or – then that is a market top or bottom! It’s great during panics. The second way is trend trading. If the market is strong you want to buy when the tick pulls back and vice versa! Buy dips or sell rallies. Finally you can find support and resistant levels. When the market is channeling you can see the tick stops at the same place as the levels in the market. This way is dangerous but it sometimes works real well. The best way I can describe the tick is sort of like the RSI indicator. The biggest problem is it sometimes leads or lags the market.
     
    #18     Apr 14, 2006
  9. ER9

    ER9

    $tick really takes alot of work to understand effectively. at least in my experience it did. once learned however i have found it extremely valuable timing entries.

    $tick is like price action in the sense it can be read and repeats itslef over time but ulike price action its patterns a not at all similar, they are not as precise and are more of a range type indicator than a pattern type(hope that made sense?)

    some things iv'e noticed about it. firstly i wouldn't use it as a standalone signal. i personally use it in combination with confirming 5 and 10 minute cci signals. $tick is actually the final confirmation of the 3 for entry. extremelly valuable timing top and bottom exhaustion.

    iv'e noticed a few things...first the 0 line really seems to have little significance as do +-1000 extremes etc. ive found it has a certain range where it trades in a channel, can bounce from pullbacks above and below the 0 line and can be misleading and fairly unreliable if you try to trade moves that push it quickly from one extreme or another in a single bar.

    what i have noticed that is revealing is that when the market is moving up or down, $tick will trade in a certain range (it varies with every trend). after time you will be able to see the range and like price action will be able to expect and judge where it will pullback to ("0" lines have little relevence in my opinion). once identifying these areas i will look for them to be broken with other signals confirming a shift in direction. very discretionary but can be done very accurately over time.

    i'm not at home at the moment....when i get home i will post my charts to help clarify how i use it and what these areas look like.
    i prefer candlesticks on my price charts and find viewing $tick as candlesticks the most revealing.
     
    #19     Apr 14, 2006
  10. GTG

    GTG

    Does anyone know what the symbol for the dow tick is in IB? Is it even available?

    I know how to get TICK-NYSE and TICK-NASDAQ using TWS, but if I put in say TICK-INDU for example it doesn't recognaize it.
     
    #20     Apr 14, 2006