Trading With The Nyse Tick
One of the least used, and most useful indicators for trading the e mini contract is the NYSE tick. It is among my favorite and most accurate indicators in my trading arsenal. Yet many traders still trade with oscillators that lag the price action and are often less than accurate. The NYSE tick is one of the most versatile and useful indicators a trader can use.
So why don't more traders use the NYSE tick?
I think one important reason the NYSE tick is often ignored is because it is not derived directly from the data supplied by the futures markets. No, information on the tick comes directly from the New York Stock Exchange. In my opinion, this makes this indicator extremely valuable. Instead of using exponentially weighted oscillator data, you will have a window into what is exactly transpiring on the New York Stock Exchange. Often times, the NYSE tick is well ahead of the action on the e mini contracts.
Why?
Obviously there is a noticeable lag between what occurs on the New York Stock Exchange and the time it takes futures traders to interpret that data and incorporate it into futures market price data. In my opinion, this makes the NYSE tick all the more valuable. It's like having a window into what the market is doing; only the data from the NYSE tick is unfiltered by algorithms and weighted exponential averages. Quite simply, it's pure data from the stock exchange. Of course, this can cause problems for some people because the data may indicate moves occurring on the New York Stock Exchange that may not necessarily materialize on the futures exchanges. To be sure, a trader must trade the NYSE tick with a well defined set of rules and make sure those rules are followed closely and with diligence. It has also been my experience that NYSE tick data is often misinterpreted and misapplied.
Questions and Answers
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