The NYSE Tick Index is a short-term trading index which takes the difference in up ticking stocks from down ticking stocks. Here’s a video of live trading with the NYSE Tick.

For example: if there are 2000 stocks trading on the NYSE and 1500 trade higher from the previous price and 500 trade lower from the previous price the Tick Index will read +500 (1500 – 500).

Using the NYSE Tick

The Tick Index is a used to and validate moves in the markets. When using the Tick Index we are looking for extremes to confirm or deny a move. Tick readings of +1000 or -1000 are considered quite strong as we tend to stay within the 1000 and -1000 levels most of the time. The NYSE Tick is the fastest of the four indicators, the others being Market Breadth, AD Line, and the Trin.