It's a 5dma of the tick.
Man it's low today, and has been below -400.
Mark Cook has been bearish for some time.
But he always says this tends to act like a rubber band.
When it gets stretched too far, it snaps back...at some point.
Notice also a change in character beginning at the end of July.
"So what do you do with it? Watch the 95th and 5th percentile. If the Cumulative Tick Indicator is above the 95th percentile, sell; if below 5th percentile, buy.
Remember, this is a counter trend strategy so the more extreme the tick, the more vicious the snapback. As with all counter trend strategies, mind your protective stop loss! A trend can persist much longer than you can remain solvent. Never try and be a hero by playing chicken with the market."
With that in mind, look at the November Tick low. Price was not finished on the downside!
http://stockcharts.com/c-sc/sc?s=$TICK&p=D&yr=2&mn=0&dy=0&i=p45679044129&a=112527926&r=7921.png
Edited by Rogerdodger, 20 December 2007 - 01:47 PM.