Using NYSE TICK for trading emini futures

[ddog]

Could someone offer their opinion on how to use the TICK index for entering trades on the emini futures. I would be interested on how you use divergences, confirmations, etc in your trading. Thanks

 

[chasinfla]

http://tradersfocus.com/modules.php?op=modload&name=phpBB_14&file=index&action=viewforum&forum=4&191

watch how the tape responds to extreme ticks (+1000, -1000); once an extreme is made, watch how the tape reacts when the tick returns to zero.

If a high tick is made, and TICK returns to zero, and tape falls off, fade the high ticks. if the tape holds up at zero, continuation is possible.

opposite applies to negative tick.

this is just a basic outline, because I'm still learning about it myself.

 

[dotslashfuture]

I'd like to hear more about this, I know that Tim Ord, who is the number one market timer right now uses the Tick and the Arms index to trade the dow and the s&p's

 

[m_c_a98]

For me I watch the 1min chart of NYSE TICK, extreme TICK levels do get a vote in my decision to enter a trade. The Dow Jones Industrial, SPX and NDX cash and futures also have equal votes.

If all the indexes have just run up to key intraday resistance and TICK is above 900. This is a very high percentage quick daytrade fade short. This does happen at least once every couple of days(nothing is certain to happen however), if not each day.

 

[ddefina]

I use the ticks as confirmation of an entry signal, by looking for higher highs or lower lows, and any divergences with the indexes. It seems to be pretty reliable in projecting future short term moves, but occasionally it gets whipped around and fakes you out. I like to look at it along with the Trin the same way, to get an idea of direction. The Trin goes the opposite direction though.

Here are some end of day divergences with the S&P500

 

[ddog]

On using the tick daytrading the eminis do you find a new intraday high in the futures and a lower high in the tick (doesnt confirm new high in futures) to be a fairly reliable shorting opportunity and is it only effective on new intraday highs (not just higher highs? If you use this how do you enter your trade, below the low of the breakout bar?

 

[ddefina]

Originally posted by ddog
On using the tick daytrading the eminis do you find a new intraday high in the futures and a lower high in the tick (doesnt confirm new high in futures) to be a fairly reliable shorting opportunity and is it only effective on new intraday highs (not just higher highs? If you use this how do you enter your trade, below the low of the breakout bar?

I use it on lower intraday highs as well, and it seems to work a high percentage of time (don't know %). I use two-minute bars and would enter a tick below the last 2-minute bar, or below the 50% retracement of the previous cycle. I rely on my exit to make my profits. I may hold for 2-180 minutes, so if it's my exits that work or my entries I'm not sure. The tick is worth looking into for additional confirmation though.

 

[m_c_a98]

Here is an example for today 06/18/02. See the attached image.

 

[ddog]

What about the low in the tick in between the first high and the second, lower high? Should this be around 0 or some other level?

 

[m_c_a98]

Originally posted by ddog
What about the low in the tick in between the first high and the second, lower high? Should this be around 0 or some other level?

My observations from watching the tick is that when the market is going up or wants too at least, TICK may find support around the 0 level and bounce. On a down move the TICK may have resistance around the 0 or +200 level.
This is just in general, we can't really have hard fast rules because you really need to experience watching it and get a feel for how it behaves on a particular day.