I was reading the book “Getting Started with Technical Analysis” when all of a sudden I came across the word “ten ticks”. I was baffled what this ten ticks is all about. I thought about it as a 10% profit or loss. Sometimes reading books with technical terms will make you dizzy. I thought of just putting the book at my little book shelf and focus on other things that I may understand. Besides, I still have some things to do other than thinking about its meaning. Perhaps next time I read it, it will be clearer.
Well, when I read the book, obviously I needed to learn some of the terms associated with technical analysis. It is difficult at the beginning but through constant practice and reading it again, I was able to muster the shallowest meaning of it. I read the first chapter and I got dizzy so I rested for a while. Then I reread again the first chapter, the meaning became clearer. But after learning the meaning of it, I am tempted to move on to the next topic since I know something about it already. But since I want to fully understand what the first chapter is all about, I read it again. This time all the terms and words contained in the first chapter were clear to me. Clear as mud. The charts presented also makes sense now. I view the charts before as some kind of a drawing plotted by a frustrated architect.
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Anyway, moving on I just searched the terms of the words in Google and most especially this ten ticks words. My interpretation is that this tick applies to the broader market. It is an indicator on the trend of the total stocks being traded in the stock market. As far as individual stocks are concerned, it doesn’t affect your decision especially in the Philippines stock market. In essence, it doesn’t apply to me personally.
On the other hand, I personally opined that ticks can be viewed as fluctuations. For example, PLDT’s price today is 2,758 pesos. PLDT’s fluctuation is 2 pesos. So, if you are going to buy PLDT, you cannot buy 2757 or 2755. You can only buy at 2758, 2756,2754, 2752 and so on and so forth.
Another example is CEI. Today’s price is .088 and the fluctuation is .001. Thus, if you are going to buy, you can buy at .088,.087,.086 and so on and so forth. You cannot buy at .0865 or .0875 because the fluctuation is only .001.
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