Tick Index¶
The Tick Index measures the number of stocks trading on an uptick minus the number trading on a downtick at any given moment. It provides a real-time snapshot of buying and selling pressure across an exchange, most commonly the NYSE. A positive reading indicates more stocks are advancing on rising prices; a negative reading indicates more stocks are declining on falling prices.
HOW IT WORKS¶
The formula is straightforward: Tick Index = Stocks on an Uptick − Stocks on a Downtick. The calculation ignores trade volume and counts only direction. The index updates with every trade, carries no cumulative memory, and resets continuously throughout the session. On most platforms it is quoted as $TICK. Readings typically range between −1,000 and +1,000, though extreme volatility can push values beyond those bounds. Readings above +800 suggest short-term buying exhaustion; readings below −800 suggest short-term selling exhaustion. Traders treat clusters of extreme readings and divergences from price action as more meaningful than any single data point.
IN TAPEBOARD¶
In the Tapeboard terminal, $TICK is available as a real-time market internals feed alongside price action in the main chart view. Traders overlay the Tick Index on intraday index futures and ETF charts to confirm entries and exits. Divergences between a new price high and a failing Tick reading are flagged visually, helping traders identify rallies lacking broad participation. Scalpers reference the live Tick stream to gauge immediate momentum before executing in index instruments. Tapeboard does not generate automated signals from the Tick Index alone; it surfaces the data as a confirmation layer within a broader internals dashboard.