There’s momentum created by this sudden buyers’ market. If all the markets suddenly have aggressive buyers, then perhaps a highly liquid ETF like $SPY will be in play for a quick scalping play. If all major markets suddenly have aggressive sellers, then I would want to know this and maybe not take a position until I found out why. How aggressive are buyers overall “ at this moment in time”? Is this behavior only happening on one market index? Or is this aggressive buying happening on all market indexes at once? This tells us how many stocks are selling “at or below” asking price and how many stocks are being bought “at or above asking price”. The TICK index is recording the buying and selling action of an entire index. Why does this matter? How is this relevant to me as a day trader? Why do I need to pay attention to something I am not trading? Simply because of MARKET SENTIMENT and MARKET BREADTH are the wind beneath that stock you want to trade’s wings!!

Let’s step back and look at the big picture. A trader needs to have data presented in a way that is relevant and useful especially the TICK index. Personally, I do not find this user friendly at all. These two pictures show how the data of a $TICK chart is presented in the TOS platform. We want our community to see it action as we look for market sentiment daily.Ī Picture of the Four Major Indexes $TICK values represented in Bar Charts At a Glance: $Tick Index Now you have another tool to maintain overall market trend analysis.Īs a result, we as a trading service have focused on adding it into our trading rooms.

However, with the advancement in technology and data sharing, the ability to monitor all the major indexes at once is not only possible, it’s recommended. In the past, most traders only monitored the $TICK (the New York Stock Exchange) due to the lack of immediate information and data gathering.

Their respective ticker symbols are: the NYSE: $TICK, the RUSSEL 2000: $TIKRL, the S & P: $TIKSP, the DOW Jones: $TIKI, and the NASDAQ: $TICK/Q. In the US markets, the Five (5) major market indexes are the New York Stock Exchange, the Russel 2000, the S & P, the DOW Jones and the NASDAQ. These Market Indicators are called Breadth Indicators because they analyze the “Breadth and Scope” of an entire Index. Today we are going to focus on the TICK Index. The index measures stocks making an up-tick and subtracts stocks making a down-tick. The TICK index looks at the number of stocks that are rising versus the number of stocks that are falling on the NYSE.If you find yourself over your head in this post, it’s best you start out with technical analysis basics.

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