I have noticed several charts where one could use a prior day's ending Tick pattern combined with the current day's opening pattern as a "continuation" of the Tick pattern. Your first 5 minute chart today is another example.
Is this something you find reliable often enough to trade off of? Or would you only use such a pattern when it coincides with other indications like today's "near gap close" with the Tick Pivot turns up ?
I had not looked for continuation patterns from day to day like that in the NYSE Tick before now.
I have noticed the same thing as you from time to time.
Several years ago I tried to look for indicators that might give an edge in holding positions overnight. It is especially enticing of late, since the overnight market has a tendency to move a lot.
However,I find the risks too high. I prefer to limit my trading to day trading techniques. It would be a good tool for swing trading equities, which I did at one time.
I agree with you that the continuation of the $TICK can be used to look for instances when the market temporarily trades in the oppostie direction of the overall trend, and then returns to the predominant trend direction. This is typically my trading plan for the day whether it be on the opening move, or part of a small or large A-B-C type of pattern. The continuation of the $TICK trend should also be used in conjunction with the two-day cycle.
For protection, always look for possible disruptions in the cycle due to unexpected political or economic news as we have had this week.
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Hi Charles,
ReplyDeleteI have noticed several charts where one could use a prior day's ending Tick pattern combined with the current day's opening pattern as a "continuation" of the Tick pattern. Your first 5 minute chart today is another example.
Is this something you find reliable often enough to trade off of? Or would you only use such a pattern when it coincides with other indications like today's "near gap close" with the Tick Pivot turns up ?
I had not looked for continuation patterns from day to day like that in the NYSE Tick before now.
Thanks for sharing.
John
Hi John,
ReplyDeleteI have noticed the same thing as you from time to time.
Several years ago I tried to look for indicators that might give an edge in holding positions overnight. It is especially enticing of late, since the overnight market has a tendency to move a lot.
However,I find the risks too high. I prefer to limit my trading to day trading techniques. It would be a good tool for swing trading equities, which I did at one time.
I agree with you that the continuation of the $TICK can be used to look for instances when the market temporarily trades in the oppostie direction of the overall trend, and then returns to the predominant trend direction. This is typically my trading plan for the day whether it be on the opening move, or part of a small or large A-B-C type of pattern. The continuation of the $TICK trend should also be used in conjunction with the two-day cycle.
For protection, always look for possible disruptions in the cycle due to unexpected political or economic news as we have had this week.
Charles