The Steenbarger Cumulative $TICK Indicator is a continuous accumulation of $TICK values. If the close of the $TICK is above a 10 day average, the difference between the close and 10 day average is added to the cumulative total, and if the close is below a 10 day average, the difference between the close and 10 day average is subtracted from the cumulative total.
The top chart shows the Cumulative $TICK Indicator for 02/20/08.
The bottom chart is the EasyLanguage Code for the Cumulative $TICK. The code is setup for a 1 minute chart. I find that it works best formated with 30 days of data.
When equity shorting required an uptick before being allowed to short stocks (Uptick Rule), the long term average of the $TICK use to hover around 300. With the elimination of the Uptick Rule, the average is now very close to zero.
The Cumulative $TICK Indicator agrees closely with the $TICK Moving Average Indicator described in an earlier post as long as the long term average is close to zero (see chart below with both indicators applied).
Charles
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