The TICK and Short-Term Extremes
The NYSE TICK
The NYSE TICK measures the number of stocks trading on an uptick minus those trading on a downtick. It’s a real-time pulse of buying and selling pressure. updated continuously throughout the trading day.
Unlike daily breadth indicators, TICK responds instantly. It captures the emotion of the moment. panic, euphoria, exhaustion, and accumulation.
Reading TICK Levels
Extreme Readings
Intraday Patterns
TICK Divergences
Price vs. TICK Divergence
When price makes a new high but TICK fails to confirm, buying pressure is waning. The rally lacks participation. potential reversal ahead.
When price makes a new low but TICK holds above prior lows, selling is exhausting. Capitulation may be near. potential bounce opportunity.
Breadth Confirmation
TICK extremes should align with other internals. A +1000 TICK with strong A/D numbers confirms broad buying. A +1000 TICK with flat breadth suggests concentrated manipulation.
TICK in Context
With VIX
High VIX + extreme negative TICK = potential washout bottom
Low VIX + extreme positive TICK = potential euphoria top
With Volume
Extreme TICK on high volume = institutional participation, follow-through likely
Extreme TICK on low volume = retail noise, fade likely
With Market Structure
TICK signals at support/resistance have higher reliability. TICK signals in the middle of ranges are lower conviction.
