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Anyone find any edge with activity based charts over time based charts?

  #4 (permalink)

Toronto , Ontario, Canada
Trading Experience: Beginner
Platform: Sierra Chart, SC
Favorite Futures: Emini ES, CL, USD/CAD
Posts: 423 since Jun 2016
Thanks: 1,332 given, 720 received

LaissezFaire View Post
Hi all,

My main chart for day trading (ES) is the 1-minute chart. I find that most of the time this chart gives a good summary of the price action without too much noise. At times of heightened volatility as seen recently, it can be too blunt. A solution during these periods of time may simply be to use a second chart instead, i.e., 30-second or less.

As I'm working on my charting methodology again, I want to once again explore other options. I know many people seem to prefer volume charts or tick charts over time based charts. Some utilize a combination.

In the past I've done in depth studies of volume, tick and range, but I have yet found a huge advantage over time based charts. IMO, quite often they visually look the same. The exception is during times of huge volatility, but as mentioned, this can be solved by simply using a sub-minute time frame instead.

Any comments?

Which charts do you use for day trading?

PS: I seem to recall that volume/tick charts would form some nice 'bases' on swing highs and lows the last time I trialed them, but this pattern seems to be gone now.

Thanks in advance.


I'm actually confused, how does a 30 second chart offer more clarity during increased volatility than a higher time frame chart which would be according to your charts, the 1 minute chart. When your 1 minute gets choppy and blunt, look to a higher time frame chart, for your system it could be 5 min. Someone trading 15 min chart may look at an hourly chart as their higher time frame chart.

However, you will find much more chop and noise on a 30 second or less if you use that as your HTF chart.

I use tick charts, not for any complex special reason. But because I'm used to it and i often interchange with bar charts of 2 mins and my HTF chart ranges about 5/10 minute. Price will still be displayed the same across all charts, if it moves down 5 points, however you like to see it, it will still be seen as a move down by 5 points.

Edit: Assuming we are looking at it, as it forms and not comparing 5 min bar to 1/4/24 hrs bar. one bar can represent the entire day or thousands of bars can represent an entire day. but my point is across all different charts when it does drop by 5 points. everyone sees the drop regardless of what type of chart they are using.

Some people like a 10,000 volume. Others have theirs for specific reasons, I just chose something that I like the pace of. It's not too fast and not too slow like 15 minute bar chart.

Last edited by noobforlyfe; May 3rd, 2018 at 09:12 AM.
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