Replies to post #4644 on MDA - Market Direction Analysis (MDA)

[ajtj99]

Here's a link to keep track of that info. Augie would probably have a more scientific explanation for Tick than myself.

http://finance.yahoo.com/q?s=%5Etic.o+^vix+%5Etic.n+%5Esti.n+%5Esti.o&d=t

[GT]

TICK - See http://stockcharts.com/education/Resources/Glossary/TICK.html

[augieboo]

PT, "TICK" is one of those terms that can drive you crazy.

Here's the definition from StockCharts' "ChartSchool."

TICK

The TICK refers to each individual move from one trade to another in a stock. An UP-TICK means the price moved up on the last trade and a DOWN-TICK means it moved down. If there is no change from the last trade, the TICK is considered neutral.

The TICK statistic on the NYSE is the net of all UP-TICKs minus all DOWN-TICKs at a given point during the day. If 1000 stocks advanced on their last trade or TICK, 500 declined and 200 were unchanged, the TICK would be +500 (1000 minus 500 equals +500). The closing TICK is based on the last trade of the day. TICK statistics are available for the NYSE, Nasdaq and AMEX.

The problem with this definition is that I can never remember what time-frame it refers to, i.e.:

-- does it include stocks which haven't traded in three days? (I don't think so.)

-- Does it include all stocks which have traded today, even if the last trade was an hour ago? (Not sure.)

-- Or does it only include those stocks which have traded in the past "N" time frame?

At any rate, here is the quick and dirty definition/explanation:

A positive TICK count means that more stocks are selling on the "up tick" than on the down tick -- which is a fancy way of saying the majority of stocks went up in price from their previous sale to their most recent.

A negative tick is just the opposite.

So, a positive tick is bullish and a negative tick is bearish, EXCEPT that when the TICK gets to an extreme in either direction it is taken to mean that the market is getting just a bit too darn enthusiastic in whichever direction it happens to be moving at that time.

So a string of very high or very low ticks often precedes a major reversal in the market.

Here are a few more random points to add to your aceto over the whole thing:

[1] The exact number which constitutes "very high or very low ticks" changes over time.

[2] The TICK itself will vary depending on which service you look at. (I don't mean vary a little bit, I mean HUGE.) I think this has to do with how often they calculate it, or something like that, but I've never been able to find out for sure.

[3] Like just about everything else, TICK data for the NYSE seems to be more reliable than TICK data for the NAZ. Zeev is the expert on the TICK so far as I'm concerned, and even he can't figure out the Naz tick. #msg-657846

[4] More from Zeev on the TICK: #msg-467424

Hope this helps more than it hurts. {ng}