Purpose: The TICK index is a market internal that quantifies short-term buying and selling pressure by calculating the difference between stocks trading on an uptick and stocks trading on a downtick. It fluctuates around a central zero line, which represents a neutral market sentiment. A positive value signifies more stocks are on an uptick, while a negative value indicates more stocks are on a downtick
Description:
Gauging market sentiment: A high positive reading suggests strong buying activity, while a high negative reading indicates strong selling.
Identifying overbought/oversold conditions: Extreme readings, such as reaching +1000 positive 1000 or 1000 negative 1000, can signal that the market is overextended and may be due for a reversal.
Spotting trend days: Observing the tick in the first 30 minutes of trading can provide clues about whether a day may be trending. For instance, if the tick struggles to break above zero, it could signal selling pressure.
Trade timing: The indicator is often used for short-term, active trading to time entries and exits, especially during volatile conditions
NinjaTrader Use:
Displayed as candlesticks fluctuating above and below a zero center line.
Our settings include oversold at -800 and -1000, while overbought at +800 to +1000.
We also use +/- 3 sigmas overlaid on this chart (SuperSigma Indicator)
Swing pivots can be utilized to help see current dialogue of higher highs and lows, or obviously the opposite idea
Practical Example:
On an ES chart, observe areas of support and rejection.
Short term trades can be tried from the extreme levels of sigmas and +/- 800 to 1000.
It may take a few minutes for the pace to subside.
We must use other ideas to confirm overbought or oversold pressure.
