In this article, day trader Brian Heyliger and CEO of SixFigureTrader.com highlights his favorite indicator — the NYSE TICK, and answers a question many traders have about indicators about his number one indicator.

The NYSE TICK like many other indicators can make you fabulously wealthy, or put you so far into the poor house you’ll wish you never heard ‘TICK’ before. But before I dive into the details of how to make money trading the TICK, let me explain what exactly the TICK is.

The NYSE TICK represents the number of stocks ticking up minus the number of stocks ticking down on the NYSE. As a result, the TICK can be used as a gauge to determine the overall direction of the market while day trading. The TICK is a true real-time (not lagging) indicator of market breath.

The TICK will tell you how much selling, or buying, is occurring on the NYSE at that instant! No other indicator I’ve seen can tell you as much about the market as the TICK. Now that you have a background on what the TICK represents, I want to share with you how to use it.

The reason I find so much value in this indicator is. well. it just works!

If it ain’t broke, don’t fix it is the mantra I live by, and since the TICK works, I continue to trade it as many other successful traders have done before me. I mean let’s use what the institutions use, after all Goldman Sachs didn’t produce the world’s most profitable trading desk by accident. And I happen to know personally, the TICK is one of their staple indicators.

So here’s how it’s used.

Many traders will use the TICK as a both an entry and exit signal for day trading. For instance,on a trend down day — a day where the S&P 500 emini is down 1% or more — selling the S&P futures (or other market sensitive ETF like SPY) at a +500 reading on the NYSE TICK is a great setup.

Or. if the S&P is in a strong uptrend buying the futures on a -500 NYSE TICK is a great setup as well. Trade setups like these work about 75% of the time on trend days, but we all know trend days only occur about 30% of the time. The rest of the time the S&P just bangs back and forth like a game of ping pong. And these days are the days where the real money is made.

On days like that — day’s I call ‘ping pong days,’ I like to fade the TICK on much larger extremes, like a +/- 1000, 1100, or even 1200. These too are great setups that occur about 5-10 times during any given week, and can be used to grab a quick 2-4 points from in the emini.

Taking a few of those each week makes for a great living in the emini S&P 500. And if you’re an adrenaline junkie like me, you’ll be hard pressed to find a better setup to get the blood flowing.

The TICK is the only indicator I use, and I recommend all traders — both experienced and beginners — learn how to ‘read the tape’ of the TICK. No other indicator will help you become a better trader.

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==> How To Make Money Trading The TICK