$Tick Long Tails & Head Wick

[minoo 11]

Hi Guys

 

I would like to get some advise and have discussion on how to interpret the long tails and head wick in compare to the candle body on $TICK chart especially when the price chart nears Support or Resistance Area or a bar-pivot forms

 

Long to me means atleast twice the size of the current visual body

 

Long head wick I interpret them as Selling-Pressure

Long tails I interpret them as Buying-Pressure

I use the instrument OBV Ave-Length 3, to confirm the $Tick sudden move out of the level bands (I plot both OBV & Tick on 1 minute chart)

 

$Tick levels I mark & observe are 0, + / - (300, 600, 800, 1000)

I particularly like WRB crossing these levels with no or minor tail / wick at the crossing end.

Initially I evaluate this occurence as an entry (OBV Confirming) & subsequently as continuation signal and may scale into the position or simply dilate my hedge / insurance

 

I would like to know how you consider interpret $Tick action in compare to price / pivot at an area. If the divergence second leg establish new high or low level than do you still take it as divergence ? & fade it ?

 

Area to me means Fib support / resistance or measured alternates, Daily Pivots (mid-Pivots), Globex Hi / Lo, Previous Day Hi / Lo, POC, etc

 

Many Thanks Minoo

[brownsfan019 17]

Pictures w/ annotations work real well when explaining.

[Guest forsearch]

Pictures w/ annotations work real well when explaining.

 

Ditto. Post a pic with your explanation so we can see what you're talking about Minoo.

[minoo 11]

Annotated chart showing end of day action Attached

Looking forward to some replies

 

-Ta Minoo

[minoo 11]

The above single-chart was not very clear so I have split them into two charts, the price side and $tick side

 

-Ta Min

[darthtrader2.0 10]

No offense but this is all nonsense IMO.

In a low volatility range bound market fading the programs near the top/bottom of the range makes sense. This is the regime on which most stuff that has been written about TICK is based but that situation is long in the tooth.

You have to account though at what interval your datafeed is giving you the TICK or your not really seeing what the programs are doing.

Sadly, it only seems that tradestation is reporting TICK at 1 second intervals? I know DTN certainly is not, anyone know if etrade is at 1 second intervals for internals?

From being obsessed with the TICK and how the program trades are sweeping the markets, it strikes me that we have terrible representations of the underlieing data. Its obviously a very noisey data series and I dont see how candle patterns have any meaning in this context.

I would love to have a conversation on how to best represent TICK on a second by second data feed. The best I've come up with(keeping in mind that DTN reports tick every 5 or 10 seconds, i forget what) that is perfect in hindsite but useless in real time is to use ninja with DTN to take every TICK reading, sum it, then divide by the number of TICK readings and plot the result giving you a very granular cumulative TICK(on DTN it gives you essentially an 8 day tick by tick moving window of the cumulative TICK). Randomly some days it is meaningless(or in other words the programs aren't doing much that day), somedays its the most deadly thing I've ever seen plotted, but only in hindsite(which I currently atribute to the interval of DTN reporting but would love to be proved wrong there).

[minoo 11]

Hi

I will try to further explain and give the last trade as an example, refer charts

 

I use one minute candle on the $Tick for the Candle body and tail comparision, after taking into consideration of Implied-Demand / Supply in the pit and cash market reaction we decided to use one minute candles on NYSE Tick. (I also Use $NYA.X futures chart as anchor (big brother) chart to trade the eminis)

Its possible to visualise 3, 4 or 5 minute candle from the one minute candles. Its also easy to see cumulation of tails or wicks above or below a $Tick level.

If OBV-Hooked on price chart in the direction of $tick level cross, by a WRB Tailed or Wick Candle than I just go along with the trade. (This is important in my trading, ie permission to establish scalp position)

 

When the price approaches an defined area confluence (or on Events like Trix or MACD divergence or Price Pivots plots @ area)

I observe more of Internals than price action, ie Tape for contract flow (ES filtered to > 39), Tick (for candle crossing marked levels with Tail / Wicks and Body comparision) and Premium (for Prog Buy / Sell AND FV line cross after one way runs / exhautions, important indication for retracement or pullbacks) Check here if the divergence legs were only formed by Prog Buy / Sell and prices rebounced away with $TICK candle action (OBV-Hook as confirm)

 

Example: Today after ER2 Gap of 8/4/08 got filled at 704.0 & ES G.Low (1220.25) & MidPivot S1S2 got crossed at 1219.3

HindSight Note: Trader Vic 2B Signal with MACD Divergence just below midpointpivot S1S2 & Premium Sell formed Div legs

These area-confluence were good enough for me to prepare for scalp countertrend entries against downtrend for retracement move up; Tape, Tick and Premium lead the show at first divergence leg and reaction followed up strongly, by the time second divergence leg was completed (refer chart); so I scaled into my limited scalp counter trend entries to full positions. My initial target was 200MA retracement (orange in chart) and 24% Fib retracement, evetually went all flat at 38% retrace.

 

So far for me this has been most effective method of trading with Confluence of Areas; Events (Price Pivots and Div, 2B, H&S etc) and Internals Reading of Tape Tick and Premium (Tick and Premium are on sound alert & flow of tape is near to price action) & OBV on price chart (as confirmation). I also use Verbally descriptive voice alerts and Visual auto plots of Div, Price Pivots, Areas, etc and I draw trendlines as soon as I can, to remain in tune/position with the market.

 

Note: I use pit traded contract (ie SPU08.P) charts for Daily, Weekly and Monthly Pivots, Reversal-Bar Pivot plots, MACD Divergence, 2B, Fib Calculations etc on 12 and 1min charts,

12Min price chart: Just look at the tails when the retracement started (low of today)

HindSight Note: Also inside and outside bars at the low, Classic

 

-Ta Minoo