Trading With Tick Index

Trading with NYSE Tick Index
NYSE Tick Index is a fascinating real-time market timing tool. Many people find it difficult to use. Some believes it is all hype. Personally, I use customized tick indices based on the NYSE Tick Index concept for daytrading. They are my most trusted trading tools and I have not seen any short term timing tool that can do a better job.

This is a collection of my writings on Tick Index and Its Applications.

It is an ongoing series – I will write more articles on Tick Index whenever I can come up with more ideas.

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TICK ES 1M_20130108_225531
Trading With Tick Index: Introduction

Tick Index was originally created by New York Stock Exchange. It is a statistical measure of the current state of the stocks traded in the exchange as a whole. It has many unique properties making it one of the most powerful indicators for trading st ...


Trading with NYSE Tick Index: Characteristics
Trading with Tick Index: Characteristics of Tick Index  member only

Due to the way Tick indices are constructed, they can be called statistics themselves. Unlike technical indicators that are directly derived from price series, Tick indices are indirectly correlated to the price movements of the underlying components ...

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TICK ES 390M_20130209_131014
Trading with Tick Index: Know Its Personality

It is time to take a look at the basic statistical behaviour of the Tick Index. Following is a chart of NYSE Tick Index and its 3 distribution graphs. Red one is the distribution of the daily low. Yellow is the distribution of the daily close. Green ...

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TICK ES 1M_20130307_131433
Trading with Tick Index: Recognize the Micro Trend Channels  member only

The NYSE Tick Index (aka the $Tick index) and other similar tick indices all demonstrate a similar trending properly. I call it the micro trend channels of the tick indices. These micro trends are easy to recognize visually once you understand how th ...

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Emini SP Tick Index Blind Short_20130316_231647
Trading with Tick Index: Blind Short Day Trading Model  member only

I am going to present the first example trading model in this series that exploits the characteristics of the NYSE Tick Index. Most people focus on the intraday behaviour of the Tick Index and forget that it is a great summary statistics tell us what ...


Trading With Tick Index: The History Of NYSE Tick Index

When I talk about NYSE Tick Index, there is a confusion where my data comes from. The confusion happens because some people find that the Tick Index they loaded onto their charts look completely different from mine. There is a good reason why that is ...

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Trading With Tick Index: A Short Summary of Various Versions Of NYSE Tick Index

While preparing for the next article on converting trading rules between eSignal and DTN IQFeed versions of NYSE Tick Index, I have been doing data comparison on and off among multiple sources whenever I have time to sit in front of my computer. So ...


NYSE Tick Index eSignal vs DTN IQFeed
Trading With Tick Index: A Comparison of DTN IQFeed and eSignal NYSE Tick Index  member only

This article explains how to translate the interpretation of NYSE Tick Index between the eSignal version and the IQFeed version. Frame of Reference I use the eSignal version of NYSE Tick Index extensively for backtesting and signal generation. It i ...


Trading With Tick Index: Early Detection Of Trend Buy Day (Signal ID - TICK Trend Buy)  premium content

Trend buy day are the days where the stock market indices just keep going higher. Day traders are often trapped on the wrong side of the market on such days due to various price based measures telling them the up moves are over extended. What they fa ...


Trading with Tick Index: Pre and Post 2007 Era

Tick Index is not a stable statistics just like the advance decline issues of NYSE. There are always changes to the issues listed and the issues being traded. But the worst offender is the way the US stock markets (and pretty much all the major stock ...


Trading with Tick Index: How to Normalize Tick Index Readings  member only

Many day traders who use Tick Index as part of their market timing tools often find that it changes its behaviour every few weeks. The most obvious issue is that the level of the extreme readings are not reliable / stable from day to day let along ov ...


Trading with Tick Index: S&P 500 Tick16

I wrote an article in the Futures magazine some time ago on S&P 500 Tick16 Index and a basic daytrading system that exploit the statistical bias on the index. Here is some supplement information about the concepts.

What is S&P Tick16 Index?

The ...

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Trading with Tick Index: Tick1K and its Divergence Signals

Someone asked what I mean by “custom tick divergence” in my real-time commentaries. Here are 5 charts (one day each) for the past week with Emini S&P, $Tick index and my DNO_Tick1K index. (You can expand them to full size for better viewing.) ...


Trading with Tick Index: The Advantages of S&P500 Tick1K Index Over NYSE Tick Index

S&P500 Tick1K Index is a custom market breadth index built with a similar principle like the NYSE Tick Index. Since the S&P500 Tick1K Index contains only the S&P500 components, it is cleaner and more robust in terms of trend quality and s ...


Trading with Tick Index: S&P500 Tick1K Index Mismatch Leading Signals

To utilize S&P500 Tick1K Index, we can start from its basic properties of being highly correlated to the bar to bar pattern with Emini S&P (and SPY too) on 5-minute chart and also its cleaner trend advantage. From these two properties, I have ...