Tick volume multiples

         Use the tick volume multiples question to look for significant increases or decreases in tick volume between days and/or periods.

Example:

         Tick volume in periods <y>-<D> is more than 1.5 times yesterday’s tick volume for the same periods.

Questions for Traders:

         What happens when there is a large jump in tick volume? Is tick volume an early indication of a market on the move?

Setting Up the Search:

Click on the parts of the box below where appears for explanations of features.

Answers:

         The search shown above generated 101 days that fit our criterion. When we refined this search to check what percentage of these days the market closed within the prior day’s value , we found that this type of close occurred only about 10% of the time. This contrasts with the overall tendency of the market to close within the prior day’s value about 25% of the time. Be aware of large percentage increases in tick volume from one day to the next. Generally, it will be a signal of a market on the move.