The tick index may appear to be one of the simplest of market indicators, but it also offers insight into market psychology. As a stand-alone indicator, the tick index has its place in the technician's toolbox, but combining the tick index with candlestick charting, another technical method for spotting changes in market trends, creates a potent combination.
Tim Ord explains how "A high degree of coincidence appears to exist between bullish tick index signals and bullish candlestick patterns as well as the bearish combinations." He looks for "A classic double bottom on the S&P 500 daily chart where the second bottom of the double bottom does not trade more than two and a half points below the first," to illustrate the point he's making in this useful article. Tim concludes that, "another important aspect is the closing tick index reading. Technically based traders have multiple tools to work with. Some are very complicated while some, such as the tick index, are simple" ... download the eBook to read more
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