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Strategies & Market Trends : DAYTRADING/SWINGTRADING STOCKS with INTRADAY INVESTMENTS

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To: - who started this subject6/3/2001 6:07:44 PM
From: drfibo   of 565
 
The TICK And Trend Reversal

The TICK is a measure of the net number of stocks that are upticking as compared to those downticking in a given index. Thus, if the TICK is -300 then we know that there are 300 more decliners than advancers at that moment.

The TICK is viewed as a leading indicator when it reaches extremes. At market tops and bottoms, emotions run at extreme levels and so does the TICK. A reading of +1000 on the tick is a warning that market euphoria has reached a peak and it may be time to sell any long positions and/or go short. At a -1000 reading, the TICK is telling us that the negativity in the market may begin to slow and we should consider covering any shorts and/or go long.

So keep your eye on the TICK intraday. You may just catch a major market reversal!

Trade Well,

Ed - DrFibo
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