Tuesday, January 8, 2013

TICK

I sort of expected to see this although it's not that often that TICK does diverge, it's a good indicator you can use to give you an early heads up of changes in character which lead to changes in trend. As the DIA, IWM and other averages start to improve on the intraday charts which are really the left over negatives from yesterday afternoon's lift in the averages, the TICK is positively divergence. Draw trend lines around the TICK and compare it to the SPX, it will sometimes give you early warning through a divergence of a change brewing.


TICK is in green (this is all the NYSE advancing issues minus the declining issues), the red comparison is the SPY. Note the SPY makes a lower low as TICK is starting to trend up, that's a positive divergence and something to pay attention to as an early warning signal, nice and easy to use.

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