$TICK and $ADD
At the time of writing this (15 July 2004) there were approximately 2,800 stocks being traded on the NYSE.
$TICK measures the net last up/down ticks on all the stocks on the NYSE. Once the market has opened, each stocks will be assigned a value of +1, 0 or -1 for the purposes of calculating $TICK. +1 if the last traded price was above the previous traded price, 0 for no change and -1 if the last traded price was below the previous traded price.
The summation of these values gives the value of $TICK at any point in time. See below for extreme and normal values.
The NYSE TICK ($TICK) is a tool used primarily by market technicians to gauge the buying and selling pressure on the New York Stock Exchange [NYSE].
There are three main ways to use this tool:
- to measure the buying or selling pressure at the close of trading
- to gauge the strength of a market advance or decline over time
- and as an indicator of overall levels of bullish and bearish sentiment
$ADD measures the net advancing stocks. It is measured as advancing stock - declining stocks.
$TICK and $ADD measure the 2,800 traded stocks on the NYSE. This means that either indicator can have a maximum value +2,800 and a minimum value of -2,800. This values are theoretical values and I don't believe have ever actually been seen but I stand to be corrected on this.
Maximum values for $TICK are usually in the +1,000 to +1,200 and -1,000 to -1,200 area with 1,500 and -1,500 considered extremes.
$ADD has extremes that are generally at +2,000 and -2,000 but higher and lower values are also seen.
Because $ADD and $TICK measure the entire portfolio of stocks
traded on the NYSE and the