Tick Index
Definition of 'Tick Index'The number of stocks trading on an uptick minus the number of stocks trading on a downtick. Tick index is a popular indicator used by day traders to view the overall market sentiment at a given point in time. By being able to easily see the ratio of "up" stocks to "down" stocks, traders can more easily make quick trading decisions that are dependent upon market movement. |
|
Investopedia explains 'Tick Index'A tick index is a very short-term indicator, often only being relevant for a few minutes, if that long. For a trader looking to enter into a bullish environment, a positive tick index is a good indicator of overall market optimism, as more stocks will be trading on an uptick compared to those trading down. That being said, tick indexes are very speculative identifiers of market sentiment at a given point in time, and are considered quite unreliable for trades that do not encompass the short time span. |
Related Definitions
Articles Of Interest
-
An Introduction To J-Charting
Learn about a technical tool that's based on the view that markets are energetic systems. -
Understanding The Ticker Tape
We explain the meaning and use of that reel of symbols whizzing across your TV or computer screen. -
What Your Trading Charts Aren't Telling You
You may be missing some key statistics when following charts in the market. -
Advantages Of Data-Based Intraday Charts
We take a look at these chart intervals and how we can use them to our advantage. -
What is the downtick-uptick rule on the NYSE?
To ensure orderly markets, the New York Stock Exchange (NYSE) has a set of restrictions that it can implement when experiencing significant daily moves, either up or down. Many of these restrictions ... -
Beginner Trading Fundamentals
-
Arbitrage Squeezes Profit From Market Inefficiency
This influential strategy capitalizes on the relationship between price and liquidity. -
A Day In The Life Of A Day Trader
Day trading has many advantages and, while we often hear about these perks, it's important to realize that day trading is hard work. -
How To Start Trading
Successful trading involves more than reading a few articles or books: you should plan on devoting a substantial amount of time and effort before ever placing a trade in a live market. -
Triple Screen Trading System - Part 2
Market tide is the basis for making trading decisions in this three-part system.
Free Annual Reports