Keep in mind: the sub-chart of the TICK has a number of horizontal lines; zero-line being teal colored, + & - 500 = neutral zone green or red dash lines, + & - 800 = general bullish/bearish are solid green or red, and + & - 1000 = extreme bullish/bearish are a green or red horizontal line.
Notice that today's TICK only got down to barely -500 which is very bullish.
Below is a chart of the SPY with TICK, the numbers 1-5 indicating setups one might look for:
1). The first higher low which followed a new TICK low, notice the strength of the green bar which cemented the higher low.
2). Profit taking at resistance on a negative TICK divergence. Notice the lower wick on the red bar under the "#2" indicating the profit taking sellers which follow this methodology.
3). Price tests support on a new TICK low which is faded.
4). Price re-tests resistance and breaks out, but on a negative TICK divergence (harami reversal bar).
5). Price tests support on lower TICK lows (reverse divergence), the strong reversal bar which followed giving a strong follow-through move in the last 15-30 minutes back to the Open price on a new TICK high (wherein profits were taken into the close, as is evident by the long selling wick on the last 5-min bar).
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