Using NYSE TICK for trading emini futures

The simplest method ever taught to me by a former market maker for using the NYSE tick was to setup a permament chart of the tick with Bollinger Bands at 2 std dev's and 20 day ma's. Trade the bounce off the upper and lower bands using ES mini's. For me I had gotten burned to many times trying to play the bounces off the zero line either direction so now I wait until I get the tick at one of the two bands. Also if the day slowly becomes a sell every rally day the bands will adjust themselves for new intraday range. Example if the market drops to -500/800 and comes back up to the zero line and drops the bands will usually have adjusted so the next visit to the zero line will also be where the upper band is now located. I use a 3 min chart. This morning I shorted the 10am est reversal because the tick had slightly broken the upper band along with the ES 3 min breaking the band. The next bar both open under the upper band and I went short at 1024.00 on the es and rode it down until the tick touched the lower band and I closed/cover at 1018.50 during the 10:12 3 min bar. If I start to notice spreading of the bands slightly on the tick chart I know that corrsponding volitity is coming in the indexes.

My two cents worth.

Bsulli
 
I should add that I watch the NY and NQ Trin's very closely in conjunction with the NY Tick. Excellent confirmation for the overall direction beeing shown by the Tick.

Bsulli
 
Does the tick divergence with indexes work just as well for bottoms as it does at tops and are your methods for entry any different?

Also do you put a stop loss if you are playing the divergence? Just above the most recent high or does one need to give it a little more room?
 
I only trade indexes these days so they work well with the tick. As for stops there are many other threads on the board for that subject and rightly so. To major a subject for here. My opinion for stops depends on the chart time frame your trading. My rule of thumb is 3 points on a 3 min chart and 5 points on a 5 min chart and for 15 min it varies depending on the time of day. The stop is the points listed before from my entry point. Ex, entry is 1020 on the es then my stop is 1020 +/- 3 points for both stop loss and sell stops.

I debated whether to answer about stops here for fear the thread will move away from discussion of the Tick. I enjoy reading the more professional traders opinions on the board and would like to see their additional comments on the Tick and possibly the addition of the Trin subject. To me they go hand in hand for intradaying.

I personally stay away from the Nas Tick. For me it whips around to much.

Bsulli
 
About tops vs. bottoms. My determination as to whether I will short tops or long the bottoms depending almost entirely the position of both the Nas and NY trin intraday. If for example both trins open up well below 1.0 then after the first ten minutes or so they continue to remain in a lower trading range then I will generally be more inclined to long the bounce off the lower tick(buy the pullbacks) band and vice verses for days where the Trin's are above 1.0. If the markets are well above 1.5 to 2.0 then heavy selling is going on for the day and possibly next several days and I'm more inclined to short the tick tops against the bands.

Bsulli
 
Went long at 11:54 3 min bar @ 1012.25 es because of the bounce off the lower band on the tick chart. Not because it was at the zero line(even thought the combo doesn't present a go support agrument) and sold at the 12:03 bar when the tick tapped the upper band @ 1016.25. If it wasn't for leaving for a meeting I would be watching for continuation for the current trend.

Darn customer meetings! All for now.

Bsulli
 
Thanks for your replies.

If you are using BB for entries with the tick how do you avoid shorting the piercing of the upper BB on an uptrending day and buying a piercing of the lower BB on a downtrending day?
 
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