Question - Forex Tick

What is Downtick?

4 Views
Orville Morrison
Answered 10 months ago
<p id="isPasted">A downtick is a transaction for a financial instrument that occurs at a lower price than the previous transaction. A downtick occurs when a stock's price decreases in relation to the last trade.</p><p><br></p>
2 Views
Freddie Mcbride
Answered 1 month ago
<p id="isPasted">A downtick occurs in financial markets when a trade executes at a price lower than the immediately preceding trade. It is also sometimes referred to as a "minus tick".&nbsp;</p><p><strong>What a downtick indicates</strong></p><ul><li>Market sentiment: A high number of downticks relative to upticks (trades executed at a higher price) can signal bearish market sentiment, indicating that prices may continue to decline.</li><li>Supply and demand: It reflects the dynamic of supply and demand in the market, as a downtick is a specific transaction where the price of a security falls compared to the previous trade.</li><li>Trading decisions: Traders can use downticks …</li></ul>