Reviewing The NYSE $TICK Internals That Preceded Swing Low and Yesterday’s Rally

Every serious trader mixes their own special ‘contextual’ sauce to guide their trading.  And while most people monitor the NYSE TICK, they use it about the same–looking at how the TICK trends intra-day and roughly eyeballing where extreme readings occur.  The simpletons like to perk up when the +/-1000 line is crossed because their minds are filled with lust for round numbers.

Also, most TICK observers use a calculation slightly different than mine.  In fact, so many users of my premium data feed wanted to be like everyone else that the company catered to them.  Per IQ Feed:

Available by customer request, we’ve added a new NYSE ONLY NET TICK: symbol JTYT.Z to DTN.IQ/IQFEED.

This new symbol:

•	Only includes NYSE Exchange trades (excludes regional exchange trades)
•	Trends the same as our NYSE NET TICK indicator
•	Shows higher highs and lower lows
•	Crosses +1000 or -1000 more often

You have to imagine how happy this made me, to know people wanted a more crude, less encompassing TICK.  Yes, please leave the quality TICK just for me!

Anyhow, I take 5 years of TICK data and run a 3rd sigma study on it.  This tells me the specific levels that are truly extreme events, TICKs bigger than 99.7% of all other ticks.  When one of these rare events hits, I have a rather jolting audio alert that resonates throughout my entire office.

Leading into the rally, in the final throws of balance, we had two extreme low ticks.  The second one marked the low nearly to the minute. BEHOLD:

Take a look at where those TICK BOMBS hit on the NASDAQ futures:

Doing your own research, with quality raw data, is how you build an edge in the market.  This is how I go about creating a new trade for my repertoire.

Pretty cool stuff right?  Perhaps you’re starting to understand the process of becoming an objective trader yes yes?  I hope so.

Good luck out there lads.

 

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