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How do I use Tick readings at daily highs and lows? How do I use Tick readings at daily highs and lows?


On a 30-minute chart, Tick extreme readings (maximum high for the day on the Quote page) can indicate the start of or the continuation of a trend. High Tick readings often indicate continuing price momentum that can last for several hours on the 5-minute chart. On the 30-minute chart the movement could be a day or longer.

NET students use Ticks at an extreme price looking for Tick divergence as an intraday reversal indicator. Ticks at an extreme (at multi-day RT/F highs and lows) exhibiting Tick divergence helps to identify the start of a trading range. For example, on Day #1, the high Tick reading is 1200 with price at 1400. On Day #2, the high Tick is 900 with the price remaining at 1400. This Tick and price variation is called Tick-to-price divergence.

Ticks primarily are used in conjuntion with Advance/Declines (A/Ds) to further confirm price reversals or trend continuation.
Article is in the following categories:
KB » FAQ - Technical



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