NexusFi: Find Your Edge


Home Menu

 





change-based charts


Discussion in MultiCharts

Updated
      Top Posters
    1. looks_one mmandi with 2 posts (1 thanks)
    2. looks_two vegasfoster with 2 posts (0 thanks)
    3. looks_3 Daytrader999 with 1 posts (0 thanks)
    4. looks_4 FXCM Brad with 1 posts (0 thanks)
    1. trending_up 2,619 views
    2. thumb_up 1 thanks given
    3. group 3 followers
    1. forum 5 posts
    2. attach_file 0 attachments




 
Search this Thread

change-based charts

  #1 (permalink)
 
mmandi's Avatar
 mmandi 
Philadelphia, PA
 
Experience: Intermediate
Platform: MultiCharts
Broker: Interactive Brokers/IQFeed
Trading: Futures: NG, CL, BP
Posts: 11 since Aug 2013
Thanks Given: 3
Thanks Received: 10

Does anybody use change-based charts? [candles are formed after a specified number of price changes instead of time (1m, 5m, etc) or volume (50 contract, 100 contract, etc.)] I'd like some input regarding the advantages or disadvantages of using change charts in comparison to other chart types. If you do use this type of chart please offer some pointers.

Started this thread Reply With Quote
Thanked by:

Can you help answer these questions
from other members on NexusFi?
New Micros: Ultra 10-Year & Ultra T-Bond -- Live Now
Treasury Notes and Bonds
Deepmoney LLM
Elite Quantitative GenAI/LLM
My NT8 Volume Profile Split by Asian/Euro/Open
NinjaTrader
The space time continuum and the dynamics of a financial …
Emini and Emicro Index
Are there any eval firms that allow you to sink to your …
Traders Hideout
 
Best Threads (Most Thanked)
in the last 7 days on NexusFi
Get funded firms 2023/2024 - Any recommendations or word …
61 thanks
Funded Trader platforms
38 thanks
NexusFi site changelog and issues/problem reporting
26 thanks
GFIs1 1 DAX trade per day journal
19 thanks
The Program
18 thanks
  #2 (permalink)
 
FXCM Brad's Avatar
 FXCM Brad 
New York, NY
 
Experience: Advanced
Platform: Trade Station, MT4
Trading: FX, CFD's
Posts: 56 since Mar 2013
Thanks Given: 75
Thanks Received: 46


mmandi View Post
Does anybody use change-based charts? [candles are formed after a specified number of price changes instead of time (1m, 5m, etc) or volume (50 contract, 100 contract, etc.)] I'd like some input regarding the advantages or disadvantages of using change charts in comparison to other chart types. If you do use this type of chart please offer some pointers.

Thanks for the post mmandi!

I’ve seen things like that in the past; I believe they are called Range Bar charts. Doing a web search yields some images of those chart types.

The interesting thing is that they remove time from charts because a new candle is only formed when X gross price move is achieved. You may be able to decipher support/resistance or price trends easier with these charts, but as with all trading, there are no guarantees.

Let me know what else you find. Good luck trading to you!

Brad

If you have any questions about the products or services provided by FXCM, please send me a Private Message or use the BMT " Ask Me Anything" thread
Reply With Quote
  #3 (permalink)
 
mmandi's Avatar
 mmandi 
Philadelphia, PA
 
Experience: Intermediate
Platform: MultiCharts
Broker: Interactive Brokers/IQFeed
Trading: Futures: NG, CL, BP
Posts: 11 since Aug 2013
Thanks Given: 3
Thanks Received: 10



FXCM Brad View Post
Thanks for the post mmandi!

I’ve seen things like that in the past; I believe they are called Range Bar charts. Doing a web search yields some images of those chart types.

The interesting thing is that they remove time from charts because a new candle is only formed when X gross price move is achieved. You may be able to decipher support/resistance or price trends easier with these charts, but as with all trading, there are no guarantees.

Let me know what else you find. Good luck trading to you!

Brad

I think range bar charts are a little different because they make a new bar or candle after price has moved a predefined range (ex. 5 ticks or 2 points). With change based charts a new bar is made after the price CHANGES a certain number of times. I've been using 233 changes while trading the NG (natural gas) contract. The chart does eliminate a lot of the noise you get with time-based charts but I wanted to know if anybody else really uses them and get some feedback. I'm a new member so I can't post an image of my charts yet. I think I need one or two more posts before I can upload some images.

I've been experimenting with it for the past 3 months or so. Time-based charts get on my nerves to put it mildly and I'm looking for some way to get an advantage over the traditional charting methods. When I'm allowed to post images I will put up a few to show the difference in chart appearance. Hopefully, that will get more people to respond and give more feedback.

Thanks for your reply. I really appreciate it!

Started this thread Reply With Quote
  #4 (permalink)
 
Daytrader999's Avatar
 Daytrader999 
Ilsede, Germany
Site Moderator
 
Experience: Advanced
Platform: NinjaTrader 8
Broker: Rithmic / CQG / Ninja Trader Brokerage
Trading: NQ
Posts: 1,525 since Sep 2011
Thanks Given: 2,067
Thanks Received: 2,316


mmandi View Post
I think range bar charts are a little different because they make a new bar or candle after price has moved a predefined range (ex. 5 ticks or 2 points). With change based charts a new bar is made after the price CHANGES a certain number of times. I've been using 233 changes while trading the NG (natural gas) contract. The chart does eliminate a lot of the noise you get with time-based charts but I wanted to know if anybody else really uses them and get some feedback. I'm a new member so I can't post an image of my charts yet. I think I need one or two more posts before I can upload some images.

I've been experimenting with it for the past 3 months or so. Time-based charts get on my nerves to put it mildly and I'm looking for some way to get an advantage over the traditional charting methods. When I'm allowed to post images I will put up a few to show the difference in chart appearance. Hopefully, that will get more people to respond and give more feedback.

Thanks for your reply. I really appreciate it!

A quick Google search of 'Price-Change Bars brought up these results:

Google-Ergebnis für http://www.linnsoft.com/tutorials/images/ChangeBar.jpg

I'm not familiar with Investor/RT, but I think you may get an idea of what is possible.

Another link leads to Ninja Trader Support Forum:

Price Change Bar Type - [AUTOLINK]NinjaTrader[/AUTOLINK] Support Forum

I think @monpere is still around here on futures.io (formerly BMT), so perhaps he can help you with that particular bar type.

Hope this helps...

Reply With Quote
  #5 (permalink)
 vegasfoster 
las vegas
 
Experience: Intermediate
Platform: Sierra Chart
Broker: Velocity/IB
Trading: 6E
Posts: 1,145 since Feb 2010
Thanks Given: 304
Thanks Received: 844

I guess I am not seeing how number of price changes would have any more meaning than volume or tick based charts. As it's an activity based chart, I think they would be better than time based charts, but how could they be better than range type charts based purely on price? They just can't, it's impossible I tell you!

Reply With Quote
  #6 (permalink)
 vegasfoster 
las vegas
 
Experience: Intermediate
Platform: Sierra Chart
Broker: Velocity/IB
Trading: 6E
Posts: 1,145 since Feb 2010
Thanks Given: 304
Thanks Received: 844

To clarify, I am speaking from the perspective of pure price action. I do believe time based charts have greater meaning within certain context, e.g. closing within or beyond certain support or resistance on a daily scale can have great significance.

Reply With Quote




Last Updated on August 31, 2013


© 2024 NexusFi™, s.a., All Rights Reserved.
Av Ricardo J. Alfaro, Century Tower, Panama City, Panama, Ph: +507 833-9432 (Panama and Intl), +1 888-312-3001 (USA and Canada)
All information is for educational use only and is not investment advice. There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
About Us - Contact Us - Site Rules, Acceptable Use, and Terms and Conditions - Privacy Policy - Downloads - Top
no new posts