The New Ticker-Tape
by CHARLES F. KRINKE
THERE IS ONLY ONE SIDE OF THE MARKET AND IT IS NOT THE BULL SIDE OR THE BEAR
SIDE, BUT THE RIGHT SIDE.
These words from one of the world's great traders are even more appropriate today as we have recently
seen the largest increase in the Dow Jones Average in one single day in history. This day, August 17,
1982, the Dow shot up 38.81 points and The Wall Street Journal described the trading as a 'buying panic'.
With a flood of buying pushing the volume to more than 92 million shares, the new S&P futures contract
was limit up at its 500 TIC limit for the first time since it began trading. Those futures traders who had
access to real time computer 'TIC BY TIC' analysis had an edge over their counterparts who were using
older methods of technical analysis.
Charting of trends has been with us for some time, but only recently has the personal computer been
available which can do this drudgery and allow the trader time to think and plan instead of plot points.
Particularly on a day like this one, a method of charting and discerning trends in seconds is of value.
Earlier charting methods for day trading had consisted of plotting by hand the price at the end of a fixed
time interval. Usually this interval was 5 or 15 minutes. The interval had more to do with the fatigue of
the person rather than any market indicators. Improvements on the hand plotting method consisted of
dedicating an expensive mainframe computer with a special plotting machine to generate such charts.
Unfortunately, in the trading of a commodity such as S&P or KANSAS CITY VALUE LINE, a five
minute picture is way too slow to make the trading decisions required to make a profit today. The 'TIC
BY TIC' method of plotting futures prices is a solution to this problem of speed and real time. Previously,
the fastest charting techniques were capable of producing 1 minute bar charts but unfortunately, such
graphs do not show clearly enough the price trends in the fast moving futures market. The 'TIC BY TIC'
method of analyzing the market provides a more flexible method of analysis and is currently used by
several traders and brokers for their financial benefit.