NYSE tick extremes and candlestick reversal entries

What the checklist withholds

The archive presents a rule-based-entry procedure that does not treat a tick-index print or a candlestick-pattern as a trade on its own. A long or short is withheld until a market-breadth extreme, a tight S&P 500 price-structure window, and a candle confirmation all appear together.

The tick-index as a breadth alert

The NYSE tick-index equals the number of listed stocks trading on an uptick minus the number trading on a downtick at a given moment. Market-breadth, in this workflow, is that same count used as an exhaustion or climax alert.

The method treats an intraday tick reading greater than +600 as a buying-exhaustion-reading, meaning possible spent buying pressure. It treats a reading near -800 or more negative as a selling-climax-reading, meaning possible spent selling pressure.

The 2.5-point windows

A double-bottom-window is an S&P 500 pair of lows in which the second low is no more than 2.5 index points below the first. A double-top-window is an S&P 500 pair of highs in which the second high is no more than 2.5 index points above the first.

The written procedure treats a double-top or double-bottom pair as a stronger candidate when the two extremes fall within five business days.

How a long or short is withheld

A long entry is withheld until three conditions coincide: an S&P 500 double-bottom-window, a first-low tick beyond -800 with a still-extreme second-low tick, and a bullish candlestick-pattern.

A short entry is withheld until an S&P 500 double-top-window, a first-peak tick of at least +600, and a bearish candlestick at or near the second peak all appear.

Wide bodies and failed climaxes

If the S&P open-to-close range stays wider than two index points, the method does not treat +600 or -800 tick extremes as a turning point. That body-width-filter withholds the turning-point call.

In one sequence, downticks of -1070 and -1340 were ignored until a later -800 reading printed with a body under two points.

An intraday downtick of -1100 or more can interrupt a decline and still fail as a lasting low, sometimes opening a multi-week sideways range that later breaks to new lows.

When the next day breaks the first extreme

When the first extreme is followed the next day by another extreme tick, the second session may break the first extreme by more than 2.5 S&P points and still qualify if a confirming candlestick reversal appears.

Candlestick-patterns as the last check

Candlestick-patterns are two-session or single-session candle formations used here only as the final reversal confirmation, not as standalone entries.

Illustrated long confirmations include a harami or a hammer inside a prior large black body. A harami is a two-candle reversal in which a small real body sits inside the prior session's unusually large real body. A hammer is a candle with a small real body at the top of the session's range, used here as bullish confirmation inside a prior large black body.

Illustrated short confirmations include a dark-cloud-cover candle, a bearish two-candle reversal used as short confirmation at or just after a second high.

Closing-tick-top evidence

The method treats a closing-tick-top as short-term top evidence when a session finishes with a tick reading above +750. A closing tick of +1000 or more is treated as a still stricter closing-breadth top condition.