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At 10:40 PM 10/20/98 -0500, you wrote:
>I'm sorry to ask this, but at the risk of boring y'all to tears, could
>someone please explain what a bouncing tick is?
>
>Clint
This is actually a good question since there is a wide misunderstanding of
the thing. It is a method of approximating the action of the market
flopping around in order to see if it will hit your exit. It does not
affect entries. Since TS only keeps track of the O,H,L,C,V, and OI on a
bar, it is not possible to tell if the H or L was hit first. So if you use
a profit target and a fixed money management stop, it is not possible to
tell which stop was hit first, if both could have been hit by the same bar.
If your bouncing ticks percent is set to 10%, TS assumes that the bar
opened, went against the trade 10% of the range of the previous bar and then
went in the direction of the trade (if it went that way at all), before
closing out the trade.
William Brower
Publisher of TS Express
Email: 1000mileman@xxxxxxxxxxxxxx
Web: http://www.insideedgesystems.com
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