I've been curious about the advantages of tick charts because it seems like a lot of people use them. The "5 Compelling Reasons..." were not compelling to me. I've always used time charts and the way I trade, it's not important whether "amateurs" or "professionals" are involved in the price action, and the example of the pullback being visible on the tick chart but not on the 3-min chart made no sense to me, I could see the pullback on both charts and the trade entry price would be close enough on either chart not to make a difference.
I also don't understand the "volume leads price" concept at all. From analyzing my trades, it looks like most of them are initiated during periods of low volume and by the time I'm taking profit the volume has peaked. This seems to translate to "low volume leads price" for me, but when I hear "volume leads price" I always imagined traders positioning after a strong volume spike which seems to indicated a pullback is coming real soon, so a good part of the move is over.
I wouldn't look at a 1 min chart for an overnight trend. I draw trend lines on a 5 min chart and a 60 min chart and also make note of the daily chart levels in case there's a really strong move or a strong trending day.
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The vertical line marks the US open (9.30 am). I am in a different time zone.
I marked the entries on both charts. These ones look easier on the tick chart.
On the tick chart these are perfect 2nd entries.
What is your opinion?
Last edited by eboarder; September 1st, 2013 at 04:20 AM.
Reason: vertical line :-)
The following user says Thank You to eboarder for this post:
This is a single data point and no conclusions should or can be drawn from this.
If trend lines are your thing, you will want to see what everyone else is seeing, which are fixed time per bar charts. Trend lines only work because everyone sees the same thing and acts on it (whether you are going with or fading the trend line).
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The following user says Thank You to Jonson for this post:
OK, right. Your chart type should fit to your trading method. Like always in trading, everything is subjective and personal preference. But what else could be the reasons for choosing one before the other?
Horizontal lines are the same for both chart types.
While diagonal trend lines have different results.
If you want to see overnight session its prettier on a tick