I’m pretty happy with the cumulative tick indicator now, so I’m graduating it out of “works in progress”. I think it does fairly well identifying which side of the tape to be on, which can be a real sticky point for me. Here’s a plot from the last week or so on a 5 min chart for ES:
The indicator uses paintbars for when the cumulative tick is rising or falling, hence the red or green bars. There are a few whipsaws, but on the whole when the market is trending it picks the right direction to be in. Not a complete trading system, but maybe a useful indicator to build something with. It can have a problem with gaps when looking at a multi-day chart (like with this morning), so watch out there.
Period = The EMA period for averaging the highs and lows of the NYSE Tick.
EMA = The EMA period to apply to the cumulative tick line for smoothing.
Lookback = Number of bars to look back to determine if the smoothed cumulative tick line is rising or falling (rising if current value is above the value X bars ago, vice versa for falling)
UseTrend (yes/no) = This uses the trend correction that I wrote about before, or not
This one is free. You can download the release of my Cumulative Tick Indicator at “Released Thinkscript Studies” on my Google site. If it helps you bank a big trade, feel free to send some my way