Closing Tick

A A A

DEFINITION

The difference between the number of stocks that closed higher than their previous trade (i.e. closed on an uptick) and the number of stocks whose closing prices were lower than their previous trade (i.e. closed on a downtick). A closing tick is used by traders as a technical indicator to denote strength or weakness in the broad market. Since buying at the close generally indicates market strength, a sustained series of positive closing ticks indicates bullishness, while a series of negative closing ticks indicates bearishness. The most widely watched closing tick is that of the New York Stock Exchange (NYSE).

INVESTOPEDIA EXPLAINS

Just as the closing price of a security is of more importance to traders than its intra-day prices, the closing tick is more important than intra-day ticks because it indicates where the market closed on a given day.

For example, if the difference between stocks closing on an uptick on the NYSE and those closing on a downtick on the NYSE is 500, then the NYSE's closing tick would be 500.


RELATED TERMS
  1. Uptick

    A transaction for a financial instrument that occurs at a higher price than ...
  2. Arms Index - TRIN

    A technical analysis indicator that compares advancing and declining stock issues ...
  3. High Close

    A tactic used by stock manipulators; they make small trades at high prices during ...
  4. Tick

    The minimum upward or downward movement in the price of a security. The term ...
  5. Tick Index

    The number of stocks trading on an uptick minus the number of stocks trading ...
  6. Downtick

    A transaction on an exchange that occurs at a price below the previous transaction. ...
  7. Money Flow Index - MFI

    A momentum indicator that uses a stock’s price and volume to predict the reliability ...
  8. Mass Index

    A form of technical analysis that looks at the range between high and low stock ...
  9. On-Balance Volume (OBV)

    A momentum indicator that uses volume flow to predict changes in the stock price. ...
  10. Negative Volume Index - NVI

    A technical indicator that relies on changes in a security’s volume to identify ...
Related Articles
  1. Understanding The Ticker Tape
    Investing Basics

    Understanding The Ticker Tape

  2. What is the downtick-uptick rule on ...
    Investing

    What is the downtick-uptick rule on ...

  3. Finding The Trend With Aroon
    Active Trading

    Finding The Trend With Aroon

  4. Are These Battered Stocks Making A Turnaround?
    Chart Advisor

    Are These Battered Stocks Making A Turnaround?

  5. Oil Chart Suggests That Now Is The Time ...
    Chart Advisor

    Oil Chart Suggests That Now Is The Time ...

  6. Trading Volatile Stocks with Technical ...
    Trading Strategies

    Trading Volatile Stocks with Technical ...

  7. 4 Large-Cap Healthcare Stocks To Watch
    Chart Advisor

    4 Large-Cap Healthcare Stocks To Watch

  8. Selling Premium As Small Caps Play Catch ...
    Options & Futures

    Selling Premium As Small Caps Play Catch ...

  9. ChartAdvisor for Aug. 15, 2014
    Chart Advisor

    ChartAdvisor for Aug. 15, 2014

  10. MACD Histogram Helps Determine Trend ...
    Trading Strategies

    MACD Histogram Helps Determine Trend ...

comments powered by Disqus
Hot Definitions
  1. Quanto Swap

    A swap with varying combinations of interest rate, currency and equity swap features, where payments are based on the movement of two different countries' interest rates. This is also referred to as a differential or "diff" swap.
  2. Genuine Progress Indicator - GPI

    A metric used to measure the economic growth of a country. It is often considered as a replacement to the more well known gross domestic product (GDP) economic indicator. The GPI indicator takes everything the GDP uses into account, but also adds other figures that represent the cost of the negative effects related to economic activity (such as the cost of crime, cost of ozone depletion and cost of resource depletion, among others).
  3. Accelerated Share Repurchase - ASR

    A specific method by which corporations can repurchase outstanding shares of their stock. The accelerated share repurchase (ASR) is usually accomplished by the corporation purchasing shares of its stock from an investment bank. The investment bank borrows the shares from clients or share lenders and sells them to the company.
  4. Microeconomic Pricing Model

    A model of the way prices are set within a market for a given good. According to this model, prices are set based on the balance of supply and demand in the market. In general, profit incentives are said to resemble an "invisible hand" that guides competing participants to an equilibrium price. The demand curve in this model is determined by consumers attempting to maximize their utility, given their budget.
  5. Centralized Market

    A financial market structure that consists of having all orders routed to one central exchange with no other competing market. The quoted prices of the various securities listed on the exchange represent the only price that is available to investors seeking to buy or sell the specific asset.
  6. Balanced Investment Strategy

    A portfolio allocation and management method aimed at balancing risk and return. Such portfolios are generally divided equally between equities and fixed-income securities.
Trading Center