In my opinion it makes no difference. Its about what you are comfortable with. I am a renko guy myself.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
Time vs tick
- Thread starter treeman
- Start date
That doesn’t bother you? Shouldn’t it make a difference? What does time have to do with sentiment?
Candles due to the arbitrary nature of time, ie the is nothing significant about the start/end times, dose make candle patterns stupid BS, so tick makes more sense, but as a reversion to mean trader its hard for any kinda average to work.
M1 and a small tick chart sounds worth a try.
increased detail is always important
Wrong, because watching the details may cause you to lose the general oversight. Ticks are irrelevant except for HFT. Newbies typically start with ticks as they think they can reduce losses or they are afraid to make losses.
Wrong, because watching the details may cause you to lose the general oversight. Ticks are irrelevant except for HFT. Newbies typically start with ticks as they think they can reduce losses or they are afraid to make losses.
I think you'll find although few do scalp of tick charts i think you'll find most of them are profitable, unlike H4 trades where its damn near 50/50 give our take.
No; I decided against it: ticks don't distinguish between one-contract and 1,000-contract transactions. So to put it mildly it doesn't strike me that a tick-chart is "probably the most accurate reflection of the overall market structure".
I've transitioned - long ago - instead to constant-volume charts (and never looked back).
What is a constant volume chart? I've never heard of that.
What is a constant volume chart?
A chart on which the closing of each bar/candle and the opening of the next is defined not by the passage of a specified unit of time (as with time charts) or by the transacting of a specified number of orders (as with tick charts), but by the transacting of a specified volume ... and if a single, large order exceeds the instant bar's/candle's limit, it's shown effectively as if it were divided between two bars/candles.
The formation of new bars slows or increases as the market tempo slows or increases, so constant volume charts truly conform to the market's tempo.
A chart on which the closing of each bar/candle and the opening of the next is defined not by the passage of a specified unit of time (as with time charts) or by the transacting of a specified number of orders (as with tick charts), but by the transacting of a specified volume ... and if a single, large order exceeds the instant bar's/candle's limit, it's shown effectively as if it were divided between two bars/candles.
The formation of new bars slows or increases as the market tempo slows or increases, so constant volume charts truly conform to the market's tempo.
Interesting...do the constant volume bars have their own set of quirks then? I only ask because I'm familiar with the quirks of time unit bars such as a big move happening within one time bar etc.
Interesting...do the constant volume bars have their own set of quirks then?
Interesting question - I'm not quite sure how to answer it. When you look at a constant volume chart, it doesn't look noticeably different from any other kind of chart, really: you wouldn't easily be able to separate out a stack of unlabelled charts into those with timed bars and volume bars.
The difference is that bars (or candles - I use bars but it doesn't really make any difference as they each give the same information, of course) are completed quickly when high volumes are being transacted and really slowly when the market's quiet.
I find that with timed bars, you need to look at volume in addition to work out whether what you're looking at means anything.
I suppose a classic example might be the hour before a Friday NFP announcement: if you look at a 5-minute chart, there'll be 12 bars there, just like there are over any other 60-minute period, but I probably wouldn't want to trade any "signals" seen at that time of day ... showing volume under your timed bar chart gives you extra information, of course, but forming the bars you're looking at in accordance with volume transacted, rather than in accordance with time elapsed or the number of transactions made, gives you a different (and for me, more reliable) perspective.
With apologies, according to my NDA I'm not allowed to post or send charts online ("mine" are actually the property of my employers and not allowed out in public!) but I remember there are some other threads here in which one or two members have posted examples of them.