January 30 Trading Intraday Reversals with TICK Channels

Jan 30, 2014: 2:27 PM CST

I wanted to highlight another example of the “Timing Intraday Reversals with TICK Channels” concept which just triggered from yesterday’s low to today’s mid-day bearish reversal.

For additional background on this important concept for intraday traders, see my prior update:

TICK Deterioration and Intraday Reversals

Here’s the current example and outcome using the @ES Futures:

TICK Channel Intraday Reversal Market Internals Trading with TICK ES_F @ES FUtures emini e-mini

We look at price itself and the intraday trend for our pro-trend or counter-trend trade set-ups.

Beyond price, we look simply to Market Internals – in this case the NYSE TICK – for additional confirmation/non-confirmation of price.

Specifically, we look for non-confirmations or divergences to signal potential – though never guaranteed – intraday reversals.

At a minimum, it adds caution to future pro-trend trades or can even trigger aggressive reversal trades for those so inclined to fight a trend.

One way to go beyond divergences is to study the “trend” of the TICK in terms of TICK Channels as seen above (and in the prior update).

Note the strength in TICK (rising TICK Channel colored green) going into yesterday’s close while price was downtrending into the critical 1,770 support level (see S&P 500 reference post “S&P 500 Trade Planning into 1,770 Support“).

Now, after the morning gap and rally, note also the non-confirmation or lengthy divergence which shows up as a red highlighted declining TICK Channel.

I also added yellow vertical highlights to pinpoint TICK (lower highs) with price (rising highs) to underscore the lengthy divergence.

You’ll get better at recognizing these events – and opportunities – the more examples like this you see.

Take time to study this concept on your own – how TICK/Internals trend with (or against) price.

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Corey Rosenbloom, CMT
Afraid to Trade.com

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2 Comments

2 Responses to “January 30 Trading Intraday Reversals with TICK Channels”

  1. What the TICK is Saying about the Current Intraday SP500 Landscape | Afraid to Trade.com Blog Says:

    […] these situations or non-confirmations (bearish price with bullish TICK) precede short-term reversals which appears to be the case here on the sharp rally up off the 1,868 […]

  2. What the TICK is Saying about the Current Intraday SP500 Landscape — Trading Your Own Way Says:

    […] these situations or non-confirmations (bearish price with bullish TICK) precede short-term reversals which appears to be the case here on the sharp rally up off the 1,868 […]