Wednesday, July 18, 2007

This next article is another great tome put out by Dr. Brett.
In summary;
"Too many nuances of the TICK exist to cover in a single article. An important one, however, is to observe unusually large thrusts in TICK values...A large jump or drop in the one-minute TICK readings indicates that baskets of stocks are either being purchased or sold. It isn’t small retail traders executing such baskets, but rather, this is a footprint of institutional traders. By tracking whether the big jumps are primarily occurring in the positive or negative direction; by observing whether they are coming early or late in a market move; and especially by noting how the jumps are affecting price, it becomes possible to align your trading with that of the “big players” in the market.
Ultimately, it’s those large traders that move price. When they are repeatedly hitting bids of lifting offers, they’re tipping their hands in the market auction. It pays to be a market shrink and analyze what they’re doing!"

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