Become a Successful Trader

June 20, 2011

Market Internals 005 – NYSE Tick

The ‘Court Jester’

The NYSE Tick Index gives us the relationship of stocks up ticking versus down ticking. The Tick is an extremely useful tool for intraday traders.

For Example:
If there are 3000 stocks trading on the NYSE and 1500 trade higher from their previous price and 500 trade lower than their last price the Tick will read +1000. But wait what about the other 1000 stocks? They could be unchanged from their last price.

When using the Tick we are looking for extremes to enter or exit a trade. Tick readings of +1000 or -1000 are considered very strong as we typically trade between 1000 most of the time on the NYSE.

NYSE Tick Chart

On this day, a relative high tick would be a reading above 400. Allow the tick to establish itself for the day during the first 30-mins or so of the NYSE session. Ticks inside 400 are simply noise.

Tips for Using the Tick:

  • Tick readings within |400| indicate chop, ignore them
  • On a range day you can look to fade tick extremes
  • A 1 period moving average can make it easier to see the trend of the Tick

Note the extreme tick readings for the day:

  • When we get a high tick and a high in price at the exact same time, this could indicate the high of the day.
  • When a high tick prints without a simultaneous high price we can continue to make new highs, until a new high tick is reached (the reverse is true for a low tick followed by new lows).
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About Tim Racette
Tim Racette is a day trader of 15+ years in the E-mini futures and swing trader of stocks. Mountain biker, lover of the outdoors, and explorer. Tim is an ASU Sun Devil and a Chicagoland Native now living in sunny Scottsdale, AZ.
  1. Tim, how can I get this exact tick setup like you have I want to put it in the bottom left of my TOS. I also want all the boxes you have along the top so I can keep my stuff on one screen as the setup. Thanks again. You’re videos and site have taught me tons! Going to get your book next week after I finish all your other content!

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