ADI TICK Internals Matrix

Created by ADI(@adikvcs)

Note: The TICK and ADD Internals Matrix scripts are specifically designed to work together and are exclusively accessible through our Discord. We encourage pairing with additional technical analysis tools for a well-rounded view of the market and solid risk management. For more details on setup, interpretation, and best practices--

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Version:

• V1

Description:

The ADI TICK Internals Matrix is crafted to visually improve the internals indicator. This tool is engineered to enhance your understanding of market trends and volatility, focusing intensely on the intraday dynamics. Things like being able to spot divergences and extremes readings quickly with just a glance.

Features:

• Trend Analysis: Utilizes $TICK data to identify market trends through a calculated moving average of highs and lows, offering clear trend indications.

• Volatility Insights: Incorporates a VIX EMA to provide real-time volatility assessment with color-coded alerts that respond to predefined thresholds, enhancing market response strategies.

• TRIN Indicator: Integrates the TRIN (Trading Index) to gauge market breadth and overall sentiment, aiding in the analysis of market conditions.

• Dynamic Visualization: Features a histogram that displays market bias with color coding—green for bullish trends, red for bearish trends, and gray for neutral conditions.

• Customizable Parameters: Allows users to adjust settings such as period, smoothness, VIX threshold, and noise filters to align with individual trading strategies and market conditions.

• Buy/Sell Signals: Generates actionable buy and sell signals based on the alignment of cumulative tick movements with historical patterns.

• Enhanced User Interface: Offers a user-friendly interface with dynamic plotting of market extremes and cloud shading to highlight critical trading zones.

• Scalp/Day Mode Feature: This added feature lets you toggle between Scalp Mode and Day Mode to suit your trading style. In Scalp Mode, the tool uses a shorter period, lower smoothing, and a shorter lookback to generate more sensitive oscillator line—ideal for quick scalp trades. In Day Mode, longer parameters produce smoother, less noisy TICK oscillator that help you capture the overall intraday trend more reliably.

Usage:

• Market Hours Operation: Best used during active market hours, especially effective in the last hour to analyze high volatility and volume.

• Trend Analysis: Observe the histogram's color (Dynamic Line) shifts to gauge the overall market direction quickly. Divergences with TICK and Price appl;y. 

• Volatility Assessment: Keep an eye on the VIX label to understand market volatility relative to the entered VIX pivot, aiding in establishing a market bias.

Extra Info on how to read TICK:

Usage of $TICK for Market Trend Analysis:

1. Trending Market:

   • The TICK index can persistently remain above or below zero during a trending market.

   • For an uptrend, consider entry points when the indicator revisits zero.

   • Employ EMAs for additional trend confirmation.

2. Rangebound Market:

   • Initiate a long position when the TICK index drops below -1000 and exit at +1000.

   • Pair these readings with key support and resistance levels for better trading decisions.

3. Divergence:

   • Monitor for divergence between the TICK index and price to assess market strength.

   • An example would be a scenario where a stock's price is making lower lows while the TICK index is making higher lows, indicating potential weakening of selling pressure.

Disclaimer: Trading options involves substantial risk. This script is for informational purposes only and is not a guarantee of success. Always conduct thorough due diligence, and practice proper risk management.