Using the TICK For Timing

I mentioned this earlier, here's an example for you.

First as mentioned several times today and very often as a general market concept, the head fake move (in this case a stop run) is very often the last thing seen before a reversal after a base has formed.

So we have both the base of about the right size, the positive divergences, and now the head fake/ stop run.

The NYSE intraday TICK can be invaluable in spotting nearly the exact moment of an actual price reversal.

 SPY positive divergence during the stop run, stops are hit as volume pops up on stop orders placed on the books, these are easy, cheap shares that pros know are there for the taking before any reversal gets under way.

Using the 1 min intraday NYSE TICK chart, I draw a channel around the TICK data and when the channel is broken, you have a pretty good idea that a price reversal is on its way.