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I don't understand how the tick chart shows the temperature better? See the other answer I've just posted that shows that the same trasaction can look like 1 or 200 ticks depending on who the aggressor is. Volume is the key and not the number of people with an opinion. If 1000 traders each...

Well if a big player is disguising his trading by putting through lots of small orders then the tick chart will make it look like lots of small players but the volume chart will expose the results of his (the) action and how effective those 100 contracts were at moving the price. So, "big money"...

I understand what you're saying about the ticks jumping on the band wagon but when you have 2000 contracts offered then 1000 ticks (trades) of one contract each are not going to move the price but 10 ticks of 200 contracts each will. This is where the tick chart provides (imo) less information...

Hi Kiwi, Thanks for the response. I give an extreme example in the article of what can happen: A tick chart creates a new bar ever X number of ticks. Let's assume that X in this case is the popular value of 233 used in a lot of tick charts. If 233 trades of 1 contract each are traded...

The following article discusses and compares the time, tick and volume chart. In this article I criticize the use of the tick chart and would like to hear from users of the tick chart what advantages it has over a volume chart...

In a virtually 24 hour market in order to implement a gap fade strategy you need to pick a start and end time. The most liquid times for the ES are when the pit is trading which is from 09:30 to 16:15 (I believe). I have tested other gap fade strategies with 1 minute data and ran the tests...

Hi Don, If it doesn't fill the gap then the trade is closed at the closing price for the day. This sometimes produces a profit if part of the gap filled but as you would suspect it produces a loss most times. I have mentioned this in other parts of the study but I should have also stated this...

I think that there is some confusion as to the parameters used in the study. ES RTH is from 09:30 to 16:15 EST. Even thought the ES trades electronically overnight from 16:30 to 09:30 the following morning, this trading and price movement is ignored and the gap is calculated as the difference...

Have you looked at this before? What sort of results did you see? I don't fully understand your reference to a Cisco or Intel gap? You're correct in saying that a Cisco or Intel gap won't appear in the study because this study strictly limits itself to ES RTH. What I'm trying to gain in this...

If anybody uses the gap fade as one of their trading strategies then you may be interested in a study that I recently did using 2 years of ES daily data to determine the validity and profitability of fading the opening gap in this instrument: http://www.deltat1.com/gapfill/ Regards, Guy