Anyone find any edge with activity based charts over time based charts? | Traders Hideout - futures trading strategies, market news, trading charts and platforms

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

  #17 (permalink)

Oslo + Norway
Posts: 173 since May 2016
Thanks: 175 given, 79 received

sptrader View Post
Personally, I prefer non- time-based charts, since "time" is a variable and in trading, it's best to eliminate as many variables as possible. Volume charts are what I currently use for my main trading chart.(but I do experiment with others).
Just like mechanical trading systems, usually the fewer the number of input variables, the more stable and reliable the system is.

I'd suggest trying all of the different chart types and try to get a "feel" for the type that is the most comfortable and helps you see the markets most clearly.
Good trading

Personally, I pay a lot of attention to time during the trading day and I like how time charts look the same every single day. They're objective and make for rational comparison, IMO. So, for me, that's a must. Using constant settings, tick/volume charts can vary some from day to day. I'm sure many people don't mind this though.

But beyond that, I'm looking to see if I can use tick or volume charts or even range charts to improve on execution and see or read something that's hidden or less obvious on a time based chart. One simple example of this would be how a bottom could form on an activity based chart while a 1-minute bar is still printing. But I'm not convinced that this couldn't simply have been observed using a sub-minute time chart instead.

I have some old data on an older hard drive which I haven't been able to acess, but I feel very certain that volume charts a few years back had this distinct pattern around market highs and lows that I can't seem to observe now. They would often form a base, if I recall correctly. It seems like highs/lows are more sharp these days.

But I need to give it more study...

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