Monday, March 22, 2010

NYSE TICK and Current Conditions



Really Nice Example of NYSE TICK Divergence and Extreme at a Pivot Top

The +1,000 TICK extreme happened at 13:05. NQ had a taller bar and both 5m bars of NQ & TICK closed with top tail. Notice that prior to the TICK extreme was positively one-sided TICK and that is bullish, but not very strong. Price moved up nicely anyway and the purple line is the advance decline line, ADD. It was rising so combined, this is bullish. I wasn't trading here because it was midday no follow thru time, but this was an exception to that.

Then the divergence came as NQ price continued to a higher high, yet TICK did not also notice ADD leveling off. There was a setup in there for a short if you wanted to scalp it.

The moving averages are still strong and I was not thinking short at all today so the bounce on the prior support and MA's and the little double bottom was nice and there was a very minor TICK divergence there also as second bottom had a slightly higher low on the TICK. From here it looks to me like a test of the highs and at that point we've gone a long way already today considering recent sizes of moves and I wouldn't expect another surge, but it is possible and if internals support it, I might buy the first pullback after a strong move up past 1951 NQ. Still on simulator.

Also, notice that the TICK extreme came at the end of a move up that was moving while the TICK was not at those very high levels of +900 or over +1k. So this +1k extreme was not confirmation of strength, but an indication of the end of the leg, more indication of at least a pivot and the leg down lasted for many TICK bars.

3 comments:

  1. Good explanation, thanks. By the way, I'm moving on to a more private venue, it's better for me. You're smart, dedicated and a good person - I know you'll continue to do well. Good luck to you. :)

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  2. Thanks. You are not blogging or not trading? I'm going to try to work nights soon. I think I'm nearly where I want to be as a trader, but not willing to stop completely, I'm still discovering ways to improve and they seem to help.

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  3. I'm still blogging and trading, I'm just doing it privately. I wish it were otherwise but it seems to work a lot better for me.

    Are you thinking about trading overnight?

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