TICK + Heikin Ashi RSI Indicator

The [Pt] TICK + Heikin Ashi RSI Indicator tool provides a comprehensive view of NYSE market trend strength by integrating the TICK index with smoothed RSI and Heikin Ashi oscillators. It aims to identify high-probability trend continuations and reversals through the synergy of breadth sentiment and momentum.

Usage

The indicator can be used to gauge short-term market sentiment, primarily on lower timeframes like the 1 to 5-minute charts.

• TICK Analysis: The TICK index tracks the number of stocks trading on an uptick versus a downtick. Readings above the "Neutral Zone" (default +200) suggest bullish sentiment, while readings below (-200) suggest bearish pressure. Extreme levels (±800 to ±1000) indicate overbought or oversold market conditions.
• Heikin Ashi RSI (HARSI): This component smooths traditional RSI values using Heikin Ashi calculations, making trend identification easier. Green candles indicate bullish momentum, while red candles indicate bearish momentum.
• Trend Signals: Bright green signals appear when all bullish conditions (TICK trend, HARSI candle color, and RSI momentum) align. Bright red signals appear when bearish conditions align.
• Divergence: The script automatically identifies and labels regular and hidden divergences between price action and the TICK index, highlighting potential exhaustion points.
• Info Table: A real-time dashboard provides the current TICK and RSI trend status, categorized from "Neutral" to "Extended."

Details

This script leverages the concept of the NYSE TICK index as a measure of internal market pressure. Because the TICK index operates on a different scale than the RSI, the RSI and HARSI values are internally scaled to match the TICK's range (e.g., an RSI of 70 is mapped to 800). This allows for a unified visual workspace where users can compare breadth and momentum directly. The inclusion of a "Neutral Zone" helps traders avoid "choppy" or sideways markets where the TICK oscillates around zero without clear direction.

Settings

TICK

• Symbol: Selects the TICK index source (e.g., USI:TICK for NYSE, TICKQ for NASDAQ).
• TICK EMA length: The lookback period for the smoothed TICK average.
• Neutral zone: Defines the threshold (± from 0) where the market is considered to be in consolidation.
• Trend zone: Defines the threshold for strong trend identification.
• OB/OS extremes: Sets the boundary for extreme overbought and oversold readings.

TICK Divergence

• Pivot Lookback: Determines the number of bars used to identify pivot highs and lows for divergence.
• Range (Min/Max): Sets the bar distance requirements for valid divergence detection.

RSI & HARSI

• RSI length: The period used for the standard Relative Strength Index calculation.
• HARSI length: The period used for the Heikin Ashi RSI smoothing.
• Smoothing: Adjusts the SMA applied to the RSI values for further noise reduction.

FAQ

How do I access [Pt] TICK + Heikin Ashi RSI Indicator?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.

What is the best timeframe for this indicator?

Due to the volatile nature of the NYSE TICK index, it is best suited for intraday trading on 1-minute to 5-minute timeframes.

What does the "Extended" status in the table mean?

"Extended" indicates that the TICK index has reached extreme levels (e.g., above +1000 or below -1000), suggesting that the current move may be overstretched and prone to a mean-reversion or pause.