Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
Why Tick Charts instead of Time Based Charts? or other chart types
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.
Can you help answer these questions from other members on NexusFi?
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.
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.
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).
Platform: "I trade, therefore, I AM!"; Theme Song: "Atomic Dog!"
Trading: EMD, 6J, ZB
Posts: 796 since Oct 2009
because each trader is responsible for their own results, an academic discussion of the comparison points and favorite aspects of each, will not happen, as you desired,
remove the reality of the net result of monetary risk management and such a comparison between tick, time, renko, range, modified hybrids and such can occur.
but the objective behind these websites, threads, discussions are essentially associative towards the objective of improvements and refinements, not abstract or academic.
hope that helps...
ok, in laymens terms, tick is better (when you succeed in your trading and risk management), and similarly time based intervals are better (when you succeed in your trading and risk management).
one really important qualifier was added by someone earlier, namely, one need pay attention to what others in the majority use... and that tidbit might be the best comapator to focus upon....
* If investing gets too difficult for a seventh grader to understand, the system is needlessly complex
* Markets produce an enormous volume of information, much of which is redundant
* In every game and con there's always an opponent, and there's always a victim. The trick is to know when you're the latter, so you can become the former
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?
f.ex.
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
