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The Tick Wait for the Extreme, Gain an Edge! Four Basic Tick Rules: 1. 2. 3.

. Buy Low Ticks (> - 400 (EA?)) / Sell High Ticks (> +400 (EA?)) A New High / Low Tick is a SCREAMING Heads Up If the market makes a New High / Low without a New High / Low Tick, it will continue to make New Highs / Lows until the next New High / Low tick. Said another way: A new high in price without a new high tick = continuation. A coincidental New High / Low Tick with a New High / Low price followed by another New High / Low Tick without a new High / Low price is a sign of trend weakness. Said another way: A new high tick after a new high in price (where price fails to make a new high) = weakness (*See chart below)

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The Tick in Depth 1. Buy Low Ticks (> - 400) / Sell High Ticks (> +400) a. b. c. d. Longs buy at low ticks, shorts sell at high ticks. Dont buy a high tick, dont sell a low tick. Less than +/- 600 can be noise. Over 600 pay attention At +/- 800 get focused +/- 1000 is a CALL TO ACTION. Use + / - 1000 to consider trades in the opposite direction of the tick (?) WAIT FOR THE EXTREME GAIN AN EDGE 2. A New High / Low Tick is a SCREAMING Heads Up a. A New High / Low Tick can signal the High / Low of the day. At this point we have to ask: i. Am I at a -23% Target ii. Are we at Resistance / Support? iii. Do we have enough room above / below this price level? iv. Are there open targets? v. If the market is at Resistance / Support at a new high / low tick and also at a -23% target, take the trade off and wait for the next setup.

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If the market makes a New High / Low without a New High / Low Tick, it will continue to make New Highs / Lows until the next New High / Low tick a. A New Price High without a New High Tick is bullish i. A Bullish Divergence Day a) A new high tick of the day occurs, the market continues to rally past the high it made at the high tick, and continues to make new highs without making a new high tick b) Stay long and continue to trail 61.8% lines until the next new high is established.

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A New Price Low without a New Low Tick is bearish i. A Bearish Divergence Day

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An easy way to stay in the trade ( a continuation signal) is: i. A downward sloping tick from the high tick of the day with rising prices means the

trend will continue ii. A low tick of the day and the market continues to sell off without making new low ticks (upward sloping tick from the low tick) the market continues to make new lows until we make the next new low tick. 4. A coincidental New High / Low Tick with a New High / Low price followed by another New High / Low Tick without a new High / Low price is a sign of trend weakness (see chart example below.) a. b. c. A second high tick higher than the first where we dont get a higher high in price is a sign of trend weakness A second low tick lower than the first where we dont get a lower low in price is a sign of trend weakness Its really the 2nd tick of the pair that is the reversal

Further Tick Detail 2nd Tick Rule: After a new high / low tick, take the trade at the next > +/- 400 Tick. Said another way take the trade at > +/- 400 tick after a new high / low tick. Tick in the 1st Hour 1. 2. The Tick is unreliable in the 1st hour of trade The way you tell its a trend day is if the ticks are extremely, extremely (> +/- 1000 (?)) high / low in the 1st hour of trade.

Trade Entry 1. Look for low/high ticks to line up with major support / resistance, pivots, fibs. a. Place your trades at a 50% level at a high tick when going short, at a low tick when going long b. If a low tick corresponds with a 50% long level, take the trade. Trend Days: a. New low ticks on trending days are buying opportunities especially when it coincides with a support level (tip tricks.) In an up trending day, each new low tick (-400?) is a buying opportunity (EA) b. If its a trending day (DOW up 60 points (?)) and grinding higher, a 1000+ tick is a heads up to buy the next pullback Choppy Days a. On a choppy day, if we get to 1000+ tick its an indication of buying pressure and were about to run out of gas you want to short. The system traders will cover their shorts at a new low tick, which often causes the bounce short covering at low ticks. In a bullish trend you can buy the next swing low.

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Trade Exit 1. 2. 3. Take profits at the -23% target (in the time frame you entered the trade in), at a new high / low tick, or the trailing 61.8% line, whichever comes first. If you are long and get a +1000 tick, consider closing your trade and taking profits. If you are short and get a +1000 tick, consider closing your trade and taking profits.

Tick and the Tape Green on the tape @ a Low Tick = Buying Green on the tape @ a High Tick = Covering Red on the tape @ a High Tick: a. Bullish Longs taking profit b. More than likely Bears Shorting New Highs More Green than Red @ a High Tick means were going to break out More Red than Green at a Low Tick means were going to break down

If you have to pick one thing to watch and learn its the tick! Watch it / Learn It!

An Example of Bearish Divergence on the Tick

1 Negative Divergence in Tick Tick makes a new high, price makes a lower high, market goes lower by > 10pts

Unsucessful traders sell low ticks and buy hi ticks - we do not! We buy low ticks and sell hi ticks unless there is bullish or bearish divergence. This divergence is created by buy/sell programs. Program trading has a major effect on market price and we want to follow their lead!

If the slope of the Hi ticks on $TICK is bearish (lower series of hi ticks) and market prices go up then the market can continue to go up till next Hi $tick of day where computer buy/sell programs reset their buy/sell conditions and may sell the Hi $TICK of the market. This can signal the HOD So, if the slope of the Lo ticks on $TICK is bullish (higher series of lo ticks) and market prices go down then the market can continue to go down till next LO $tick of day where computer buy/sell programs reset their buy/sell conditions to buy the New Lo $TICK of the market. This can signal the LOD

Daily Goals: -First, we establish the trend of day by watching the first High of Day (HOD) or Low of Day (LOD) $TICK, we also use Breadth and BANK indicators to confirm direction or price trend of market -Bear divergence rule: we don't sell hi ticks if price continues to go up without a new high tick- until next new HI $tick of day -Bullish divergence rule: we don't buy low ticks if price continues to go lower without new low tick- until next new Low $TICK of day Know your divergences because : Each New High $TICK of day may be the market high of day Each New Low $TICK of day may be the market low of day -We will buy a low tick when the market is going up and there is no bullish divergence -We will sell a high tick when market is going down and there is no bearish divergence -We dont want to sell a high tick if the market is going straight up until another new high tick of day because the new high tick of day may end the bearish divergence- or uptrend -We Dont want to buy a low tick when the market is going down until another new low tick of day because the new low tick may end the bullish divergence-or downtrend -Follow Trading Rules and Draw your fibs on 233tick and 15min/daily - know your positions on different time frames and anchor chart to finesse your entry/exit strategy at 50% entry or -23%targets

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