Updating TICK Volatility Charting For October

technical bounceCorey Rosenbloom: Speaking of instability of Market Internals from today’s earlier post, let’s take a moment to update our TICK Volatility Charts and make note of the recent changes to the popular market internal.

We’ll start with a view of the “TICK Volatility” chart:

TICK Volatility, TICK, Market internal, intraday trading

For a quick review of how to interpret the data, see the following posts (or the archive below):

The top pane is the Dow Jones Industrial Index (it could easily be the SP500 – it’s just used as a reference), the middle pane in the NYSE TICK with a 20 day (roughly one month) simple moving average of the high and low of the day, and the bottom red line is the difference between the 20 day average TICK high and 20 day average TICK low.

Notice how TICK – like volatility itself – has a cyclical or rhythmic behavior to it.  Like price itself, TICK goes through periods of low or high volatility (range contraction or expansion).

This is why a popular +1,000 or -1,000 value means different things in different volatility environments.

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