In the comments today, we were discussing the TICK, and Dave brought up the TIKI, which is the Dow TICK. So here is an example of how I would use it (click chart to enlarge):
The daily closing $TIKI is the blue line at the top, and I have added Bollinger Bands. The candlesticks at the bottom are the daily SPX. I have put a purple arrow at each point where the $TIKI hit the bottom Bollinger Band. I have also put purple arrows at the next day’s SPX candle.
Buying the open and holding until the close the day after the $TIKI hit the lower Bollinger Band would have given you three winning trades over the past two months. This happens because TICK extremes usually reflect overbought/oversold conditions.
For an extensive discussion of the TICK, see my book: The General Theory of Day-Trading.