TIKI Trading

In the comments today, we were discussing the TICK, and Dave brought up the TIKI, which is the Dow TICK. So here is an example of how I would use it (click chart to enlarge):

The daily closing $TIKI is the blue line at the top, and I have added Bollinger Bands. The candlesticks at the bottom are the daily SPX. I have put a purple arrow at each point where the $TIKI hit the bottom Bollinger Band. I have also put purple arrows at the next day’s SPX candle.

Buying the open and holding until the close the day after the $TIKI hit the lower Bollinger Band would have given you three winning trades over the past two months. This happens because TICK extremes usually reflect overbought/oversold conditions.

For an extensive discussion of the TICK, see my book: The General Theory of Day-Trading.

6 thoughts on “TIKI Trading

  1. Thanks, Matt. one nice thing about the TIKI is that it can’t be more than +30 or -30. The parameters are finite & can’t shift as much as the TICK.

  2. Matt, one thing i like about you is that like me you’re the trading equivalent of a gym rat. LOL

    I enjoy my time off, but some Friday afternoons when i feel “dialed in” to the mkt i can’t wait til the opening bell Monday morning.

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