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Confusion is my middle name. I honestly do not know what the correct setting is for each instrument when it comes to tick size. Sometimes to get the chart readable I just increase the tick size so it looks good - are there wrongs and rights when it comes to tick size?
I usually work with number bars and sometime the bar looks ridiculous long to the point it gets unreadable.
What would you have set as tick size for the YM (Mini Dow) ?
Can you help answer these questions from other members on NexusFi?
It's hard to understand what the question is here. I assume you don't mean "tick size" in the same sense that @JBWTrader understood you to mean (although that was my first thought also), that is, the defined dollar value of one "tick" (the minimum price change) of YM, which is not something you can set anyway, since it's defined by the exchange.
The word "tick" can mean other things too -- for example, if you are using "tick" charts, which create bars based on the number of transactions, then each trade is called a "tick" in this context. This may be what you mean, and if so, I interpret the question as something relating to the number of ticks in the bars on the chart, as in a 100 tick chart, a 200 tick chart, etc.
Is this what you mean? There is no one ideal "tick" size in this sense, because it depends on a trader's trading style and method. If you include a chart image, it may help people understand what you mean and what size "tick" charts you use, if you do,. Whether it's what you mean or not, a chart image showing what the issue is would be helpful.
If you mean "tick" in some other sense, please give a fuller explanation so someone can help you out.
Bob.
When one door closes, another opens.
-- Cervantes, Don Quixote
Many use 144 or 233 tick size per bar for YM some even use a faster setting like 89 tick size per bar. I know a site which sells a tool to calculate all of this for you:
One way i like to proceed when it comes to tick size is i try to match a minute timeframe. So if 1 minute is too slow for you then look at a 15 sec. timeframe and add the ATR(50) or ATR(100) to the chart to find the average range per bar. Then, you try to match the tick size you got from the ATR to this value.
It's mostly a question of how many bars you want to see on your chart per session. If your tick size produce too many bars then it is not tradeable. As a rule of thumb many try to match a 5 min timeframe to avoid some of the noise.
Tick size should be based off of the frequency that you are trading. For day trading, 89, 144, 233 tick charts are perfect. I know a few people that even use 55 ticks. Swing trading or holding for a day or so, 1597 tick or larger is good on the YM. All of these numbers correlate to the fib sequence.
