Single ticks are from Market Profile. Market Profile is a vertical chart with a new letter created every half hour. Each letter is called a TPO (time price opportunity).
Futures markets have a way of producing bell curves in both TPO and volume. Markets tend to go back and fill in low areas of volume and TPO’s. When they do not it can be sign of a strong directional move, as it moves away, creating single ticks. Single ticks are created when the market only trades at those prices in a single half hour period.
We look at single ticks in a couple of ways. The first is when the market gets directional. Lets say the market breaks hard in a 30 minute period. When the new 30 minute period opens there will be single ticks above. We will use this information as either a place for a really cheap risk/reward play or as a place to put our stop. If the the directional move is strong it will not fill in the single ticks.
The second way we look at it is for the market to fill them in. Lets say the market has created single ticks below. This could have happened a a month ago or a day ago or earlier in the day. We are short heading into single ticks, we look to exit our position going into those single ticks.
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