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[ Glossary menu ]
The tick is the upward or downward movement
of a stock's price. (i.e. "It just ticked up.") The TICK, usually given
as one of a number of market indicators, refers to the net tick on their
last trade of all stocks being traded on a given day.
This information is useful in determining
the current direction of the market and strength of the market in a given
direction. For example, the market could be up 50 points, but, if the TICK
were -400, it would indicate that the market had changed directions and was
heading down. Or the market could be up 50 points with a tick of +750. This
would indicate that the market was likely to go much higher since the momentum
is clearly up.
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