Interpretation of cumulative tick

[Harry]

I am going to ask a question that is going to show how green I really am.

Yesterday, we had strong computer buying, as the cumulative tick was above all averages on below average volume. The market gapped up and hence the gains were from that point forward - from an in/out same day trading strategy.

Today, again as EB has previously shown in another post, we again had cumulative tick above all averages yet the gains were not nearly as dramatic and in fact the market was negative at times.

Could one interpret these differences as yesterday hardly anyone was selling (pushing prices higher) and today the computers were buying into selling? Would it be considered a safe R/R diveragnce play to buy when the cumulative tick is up and yet the market is down? I am trying to better understand how cumulative tick can be used as a long/short day trading indicator.

Regards,
Harry

Post Script - thanks Ernst for sharing your TOS code.

[Billy]

Harry,
The moving averages I am using with cumulative TICK are not very useful for precise day-trading. The first average (1/2 day) is not very helpful for a precise day trading entry at the open after a big gap, but very helpful for swing traders.
The best intraday use of cumulative TICK for intraday timing is in combination with the day’s VWAP. If cumulative TICK tells you what market makers’HFT are doing, the VWAP tells you if they are really in control. Higher lows in price above VWAP with rising cumulative TICK are bullish, lower highs below VWAP with cumulative TICK declining are bearish. Most other possibilities are in favor of continuation of the previous trend, which can be sideways on range days.
Billy