Hubert Senters here.
Let’s cover the most complicated and most confusing term in trading. It is the word tick, TICK. The only problem is downward is we use it in tons of different stuff and it means slightly different things.
Let me give an example of what I’m talking about. So in stocks there is an up tick and there’s a down tick so need to trade when it up ticks in order to short it.
So there’s an up tick or a down tick. In futures or tons of other stocks you can actually have the chart display the numbers off ticks so it’s the number of transactions.
So you go right click format symbol and now I can come in here and I can set a 2 minute bar. I can do trade volume or I can do the tick count and I can say ok I want to do 233 tick chart count on this thing.
And now this would be a $230 3 minute tick chart and it tick charts so every bar every candle is going to be worth 233 ticks. That’s another common thing.
Now, let’s take a look at the tick which is market internal so fast slide this over here and then slide this in here. There’s a thing called the tick. And it’s the NYSE tick.
It is the mathematical relationship of the number of things up ticking plus their volume divided by the number of things down ticking plus their volume and it will give you a mathematical ratio.
Is it a positive tick ratio of $2300 or is it a negative ratio down here minus $500. They’re very useful. I use it as an RPM gauge for the market.
And then there’s a tick, a minimum move so like on bonds or notes or anything else that you trade as futures contract. So I’ll go back over here and take a look at the 2 minute chart on the Dow.
I’ll format this symbol really quickly and show you that again. Just going to go 2 and I’m going to do take away from the tick count.
I’m going to do a 2 minute bar tick count. Now, that’s a 2 minute bar so on the Dow how a tick is done would be a minimum move in an increment.
And in the Dow it’s super simple. One tick is also one point so if I’m trading at $33,257, $256 would be one tick.
If I do that for like the bonds and the notes. Let me grab a trade over here. If I’m looking at the 30 year bond. Let’s do this.
Then over where when you go from started an even number. $157 to $157 1/32 that is considered one minimum increment. It’s also called a tick so that’s why this word is so damn confusing because we use it to describe tons of different information.
So it could be a tick chart which is a transaction based upon the number of increments that went into that physical building into that bar. There is the tick market internal.
And then also every little minimum increment is called a tick. So I just figured out I would share some light and shed some light on that because it will confuse the shit out of you if you don’t know that.
I’ve been asked to speak at the Wealth 365 event. I’m going to HYPERLINK you to the registration page. Over there I’ll be teaching you how I scan the markets, how I find good trades and how you can do it too with as little as three clicks of a mouse.
Good luck. Hope it helps. I’ll HYPERLINK you to the registration page.