Tick Charts are one of my “secret weapons” and here’s why.
As you can see, you want to follow the Professionals.
They were buying the dips and shorting the rallies. They were shorting the dips and buying late into the rallies.
Similarly, looking out for low value bars allows you to identify what the Amateurs are doing. Now I think that information alone would be reason enough to use tick charts, but there’s more …
From time to time I get questions about tick charts and yesterday’s email from Ken was typical: “I’ve been scouring the Internet for information on tick charts and their ins and outs – but have found nothing useful.
Can you please point me to a good source of information with a decent explanation? Don’t get confused with the NYSE TICK Index (or $TICK in many charting programs). It measures the number of stock issues trading on an up tick versus a down tick.