Tuesday, February 24, 2009

NYAD & TICK Revisited

Shown above are 10 minute bars of the NYAD and TICK over 10 days.
This is an update to a previous post on using the NYAD and TICK to trade/fade the markets.
One thing we can see right away is that rallies have not fared very well for the past 10 days. The fade the open strategy has been a solid performer for that period and the NYAD has done a superb job of keeping us on the right side of those trades.
What is interesting (to me) is the failure of the TICK to generate confirmations as well as in the previous post. Settings have not been changed. . . the TICK MAs are 12 & 24 but of the 8 solid sell signals in the NYAD, the TICK really only fired on 4, with with significant lag delay and a fifth cross on day 6 when the markets gapped down at the open to a .07 level with no relief for the rest of the day.
On 3 of the days the TICK was actually upslope. . . contradicting the NYAD signal. I'm somewhat at a loss to explain this disparity and certainty welcome any reader input, but the net effect is to shake my confidence in the TICK and rekindle my enthusiasm for the NYAD.

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