I wanted to share a timely link from Rob Hanna at Quantifiable Edges entitled:

“What a Very Weak TICK has led to in the Past.”

I incorporate the TICK in almost every single intraday trade, but it’s nice to have quantified research to support your trading decisions.

The post is actually from February 2010, as Rob takes a look at what happens when the NYSE TICK remains under zero for the first 30 minutes and what is likely to happen in the close.

The link above references a strong negative TICK open, while the link below refererences a strong TICK open:

“What a Strong Early TICK has Meant in the Past.”

In both situations, Rob shows research where a strong opening TICK led in most cases to a continuation of that move into the close.

In other words, big TICK moves off the open are more likely to lead to price CONTINUATION in that direction, rather than reversal.

Thus, strong positive TICK concentrations more than not led to continued bullish moves into the close, while strong negative TICK concentrations off the open more than not led to further downside moves into the close.

Thanks as always to Rob for sharing his research!

Corey Rosenbloom, CMT