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Strategies & Market Trends : Take the Money and Run

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To: gypsees who wrote (6315)6/27/2002 1:48:49 PM
From: Jorj X Mckie  Read Replies (2) of 17639
 
tough question. The tick represents whether stock transactions are being bought on the uptick or the downtick. So a positive tick would mean more buying pressure and a negative tick would mean more selling pressure. However, extreme readings on either end can mean a change of direction in the market. (capitulation).

One important note is that the tick does not take into account volume. So a bunch of small trades can skew the numbers. I use the tick with the trin. The trin is similar in that volume is part of the equation.

A tick of 1000 is pretty high, but can mean more strength. But we have also had a tick of -900 today, which kinda screws up the interpretation.

The TRIN has indicated selling all day long though.
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