Technical Analysis: Understanding the Block Uptick-Downtick Ratio | Test Prep

A block uptick-downtick ratio of 0.67 would be viewed by technical analysts as

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A block uptick-downtick ratio of 0.67 would be viewed by technical analysts as

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A block uptick-downtick ratio is equal to the number of upticks for block trades divided by the number of downticks for block trades in a given period. Upticks are assumed to be initiated by buyers, while downticks are assumed to be initiated by sellers. Technicians view a low ratio value (0.70 for example) as a sign of heavy selling and a bearish sentiment on the market. In contrast, they view a high ratio value (1.2 for example) as a sign of heavy buying and a bullish sentiment on the market.