Tick Fade Indicator for Think or Swim

tickfade_nq

Here is a Thinkscript indicator that plots a dot if the NYSE TICK for the current chart timeframe breaches a threshold value. Compare the chart below to see what I mean:

tickfade_tick

I plotted the Tick Fade indicator on both charts, so the bottom chart is comparing the TICK to itself. With this indicator, if you set up a chart for 5 minutes, then you will get a paintbar if the high NYSE tick on a 5 min bar is over the threshold value (default 1000). Similar for a low tick. The timeframes are linked in this study, so the primary timeframe for the chart will dictate the corresponding timeframe for “high”, “low” etc. for the TICK reference.

I call this the Tick Fade indicator because I want to fade an extreme move in the TICK, as an indication that too many stocks are all moving in the same direction. If I’m in a trade, and I get a high TICK reading in my direction, I want to take some profit, as this is likely to be close to the final extreme of the move. In Mastering the Trade, John Carter uses extreme TICK readings that are adverse to his position as a signal to get out, which is not a fade, but an anticipation of more strength to come. Richard at Move the Markets has a lot of good articles about the TICK and its use. Many different strategies, but now you know how to use the TICK info without having to keep a separate chart of the TICK open on your layout.

You can download the Tick Fade indicator at my Google site under “Released Thinkscript Studies“.

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18 Responses to “Tick Fade Indicator for Think or Swim”

  1. RaginCajun Says:

    Love what you are doing ovah here.

  2. Dogwood Says:

    Nice work and thanks for the HT on Twitter.

    Just wish ToS had cheaper stock commissions so I could use their software and your scripts!

    Still haven’t forgotten about sending you an email on trading ideas, I’ll get to it eventually. 🙂

  3. rmultiples Says:

    Nice work! Be sure to post about it when you put up a tip jar for these codes because I owe you a beer for this one.

    Cheers,
    Jack

  4. RobInMD Says:

    Thanks for the scripts. Have you seen the ThinkScripter site? He’s doing a lot of the same stuff: http://thinkscripter.wordpress.com/

  5. Prospectus Says:

    @RobInMD: Glad you think they are useful. I hadn’t seen Thinkscripter’s site before. I’ll add it to my links.

  6. TK Says:

    thanks for this, its a great tool! quick question, is there any chance to code the dots on the chart for high tick and low tick (i.e. red/green)?

  7. Prospectus Says:

    @TK: Yes, it’s very easy to change the colors. Just replace the formatting code with this (changes in bold):

    #
    # Formatting:
    #
    lowtick.setdefaultcolor(color.red);
    lowtick.setstyle(curve.points);
    lowtick.setlineweight(4);
    hightick.setdefaultcolor(color.green);
    hightick.setstyle(curve.points);
    hightick.setlineweight(4);

  8. TK Says:

    Thanks Prospectus,

    That worked great!

  9. Curtis Says:

    I just finished building a similar tick indicator but I designed mine to display the TICK behind price. If you want, check it out at

    http://tosindicators.blogspot.com/

  10. Prospectus Says:

    Thanks, Curtis. Always nice to find other Swimmers and Scripters out there!

  11. AI Says:

    Its a great indicator I just wished it worked on tk charts as it only plots on time charts thanks for everything you do.

  12. Prospectus Says:

    AI,

    I wish it worked on tick charts too. Maybe in a future ToS release…

  13. countjoemoney Says:

    Thanks for access to your work. Seems I am getting an error with this line “def range = high – low;” I copied and pasted and made no changes. Range seems to be throwing it off. Any suggestions?

  14. Prospectus Says:

    Freaking WordPress keeps doing that to me. It changed the “-” sign to some fancy hyphen ASCII character, and then Thinkscript pukes on itself when it tries to compile the script. Delete the “-” and retype a minus sign from your keyboard and it should fix it. I also changed the source code, so it should copy and paste fine now.

  15. Tim Says:

    Does this indicator work on a tick chart? ie: 512t or 144t etc.

  16. Tim Says:

    Aplogizes as I see my question was answered above. Thank you.

  17. Prospectus Says:

    No, it doesn’t. Until we can access tick info tick by tick and aggregate bars on our side of the platform. You could probably get an audio alert on a tick chart, but not any plots on your chart.

  18. slait73 Says:

    Please could you help me? I import it as new study bot doest go.
    Have any suggestion, please?

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