Using the $TICK for confirmation

PitBull,

I have had similar problems trying to use the TICK indicator.

Lately, I have used the 50 and 200 exponential moving average of the TICK close on the 1 min chart for the ES contract to help determine long or short bias in the underlying market. I also use ADX of the ES price chart to help with the strength of that bias.

In other words, I will use my TICK Indicator as a confirmation of market bias, and the ADX as confirmation of bias strength.

Charles
 

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Quote from pitbulltrader:

Easy rider perhaps I should have been more clear when I said..

"I have been day trading for 8 years the emini S&P and I can never really get a handle on it. Like most I am always looking to improve entries / exits."

and of course we would all like to see examples of the "patterns that repeat so often" I hope you are a real trader and can actually back up what you say...too many paper traders lurking around...your response will tell us all where you are at...Special Thanks to VSTscalper...cool stuff..
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I was just going to let this die but since I went off topic and ran my mouth I cant just walk away. I did misread you and if youve been trading ES succesfully for several years then I should be getting advice from you. These are the patterns I traded this week. Im sure you have seen them hundreds of times but they work very well. I have a binder full of them,
 

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Quote from toc:

I try to use the TICK indicator when my dog starts some itch action on his body using the hind legs. The signals comes one or two times a week but even then it does not work. :p
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At least your dog keeps you from overtrading.
 
Quote from pitbulltrader:

I was wondering how most people use the $Tick indicator. I have been day trading for 8 years the emini S&P and I can never really get a handle on it. Like most I am always looking to improve entries / exits...

This is some of what I have been exposed to...I'd be curious to see how others are using it and more importantly how does one determine when a high Tick reading is implying new buying vs a buying climax and the reverese for sells....heres what I do ....sometimes....lol

1) I look for divergences between price and Tick as long as there is 45 minutes to one hour between the readings......stole this from Raschke...seems to work ok

2) If I am long and we get a good high tick ( 800 - 1000) with a good volume push I will exit partials and trail stops tightly...reverse for shorts

3) I like to fade tick extremes but only in the first 90 minutes and donot fade after 2 PM est

4) I have heard people say they watch the first pullback to zero after new Tick highs for buying opportunites but I have found this inconsistent...say with new Tick lows..

Although it is not needed to daytrade effectively I'd like to know if I am really missing something with this indicator..thanks


Pitbull
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The tick is an excellent indicator when used with other indicators. Most floor traders use it on the NYSE. There are 3 ways to use it. The first is contra trading. When it hits 1000 + or – then that is a market top or bottom! It’s great during panics. The second way is trend trading. If the market is strong you want to buy when the tick pulls back and vice versa! Buy dips or sell rallies. Finally you can find support and resistant levels. When the market is channeling you can see the tick stops at the same place as the levels in the market. This way is dangerous but it sometimes works real well. The best way I can describe the tick is sort of like the RSI indicator. The biggest problem is it sometimes leads or lags the market.
 
$tick really takes alot of work to understand effectively. at least in my experience it did. once learned however i have found it extremely valuable timing entries.

$tick is like price action in the sense it can be read and repeats itslef over time but ulike price action its patterns a not at all similar, they are not as precise and are more of a range type indicator than a pattern type(hope that made sense?)

some things iv'e noticed about it. firstly i wouldn't use it as a standalone signal. i personally use it in combination with confirming 5 and 10 minute cci signals. $tick is actually the final confirmation of the 3 for entry. extremelly valuable timing top and bottom exhaustion.

iv'e noticed a few things...first the 0 line really seems to have little significance as do +-1000 extremes etc. ive found it has a certain range where it trades in a channel, can bounce from pullbacks above and below the 0 line and can be misleading and fairly unreliable if you try to trade moves that push it quickly from one extreme or another in a single bar.

what i have noticed that is revealing is that when the market is moving up or down, $tick will trade in a certain range (it varies with every trend). after time you will be able to see the range and like price action will be able to expect and judge where it will pullback to ("0" lines have little relevence in my opinion). once identifying these areas i will look for them to be broken with other signals confirming a shift in direction. very discretionary but can be done very accurately over time.

i'm not at home at the moment....when i get home i will post my charts to help clarify how i use it and what these areas look like.
i prefer candlesticks on my price charts and find viewing $tick as candlesticks the most revealing.
 
Does anyone know what the symbol for the dow tick is in IB? Is it even available?

I know how to get TICK-NYSE and TICK-NASDAQ using TWS, but if I put in say TICK-INDU for example it doesn't recognaize it.
 
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