Trading 1000 $TICKs and 50% Corrections

You will read from time-to-time, to fade + or - 1000 $TICKs.

It has been my experience, that the market will typically test the high or low when the $TICK reaches + or - 1000. On the retest, I like to see weakness on upside tests or strength on downside tests in the $TICK 2-period SMA of the $TICK ((H+L+C)/3) (light blue or cyan line).

At 1325 ET on Friday, the $TICK reached +1000. I prefer to wait for the retest of that high with indicated weakness in the $TICK before I am willing to fade that move. At 1336 ET, we got indicated $TICK weakness and the start of a 2-period SMA downtrend, as indicated by the red paintbar on the ES futures bar. The end of the 50% correction came at 1356 ET with indicated $TICK strength on a test of a recent low in the futures.

Charles