Tuesday, July 21, 2009

NYSE Tick, great trading tool!

Hey guys, here's a great trading example that I hope will help everyone reading!

Here is a 5 minute chart of the trading session yesterday, on top is the S+P 500, on the bottom is an indicator called the NYSE Tick, this reading for those who are unfamiliar with tells how many stocks are trading at ask, to those that are trading at bid. Here as you can see the sellers came out in the mornings and got a negative tick reading, but look what happens after we get higher lows and higher highs, meaning selling pressure decreased, and gave the bulls more confidence to take this market up higher.

I had gotten in on my long trade at the 2ND low, unfortunately because I wasn't going to be at my computer for a little bit, I moved my stop to break even, the market sold off and took my out before shooting higher:(