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THE MARKET WHISPERER 22 5

show extreme outputs such as a 3 reading. The trader needs plenty of
experience to know just when to use the indicators for a market that is
beyond normal activity and operating chiefly on the emotions of fear or
greed. Such days can indeed be highly successful for your trading account,
as they are days on which it is relatively easy to guess market patterns
without the use of indicators.

TICK

A tick on a stock is a change of one cent. The TICK is a simple but important
indicator that examines the “ticks” at any given moment for rising stocks,
minus the “ticks” for dropping stocks on the NYSE, and displays the
outcome, i.e., the difference between the quantities of rising and dropping
stocks.

Let’s say, for example, that at a given moment, 2500 of the approximately
4000 companies trading on the NYSE are rising, and at exactly the same
moment, 1500 companies are falling. The indicator’s result will be 1000,
according to the following calculation: 2500 minus 1500 = 1000. In other
words, at that particular moment, more companies’ stocks are rising than
there are stocks falling. The indicator can show an up outcome like that of
the example above, or a down outcome, where the quantity of companies
with falling prices is greater than those with rising prices. Ticks can move
very speedily between up and down readings even when the market is
rising or dropping, since they represent momentary outcomes. During an
upward pattern reversal, the number of stocks rising will be higher for that
moment than those falling: the tick will show a positive number even if the
market overall is trending down. When the tick is negative, the quantity
of falling stocks is greater than that of rising ones. When the market is
moving sideways, the tick data is around the zero mark.

SMART During an uptrend, the tick’s highest highs will be higher in
MONEY absolute value than the tick’s lowest low when the market
returns downwards.

The symbol on your charts will be $TICK, although the dollar sign might

be on either side of the word. Displaying the indicator can be a problem.
Few platforms know how to display it properly, since the regular chart
usually is unable to display a negative outcome. For this reason you may
need to make do with only the positive TICK results. We display the TICK
in five-minute intraday candles.