What chart type? Time, tick or volume

[ElectricSavant]

Thank you for this thread.

I learned a lot. (range bars need to be looked at, seems interesting, very effective for S/R all on one page)

Michael B.

 

[BENG]

I think the momentum bar chart is very similar to the renko chart.

 

[BENG]

Does anyone have a general rule on how should one setup the volume per bar in the volume chart? As the liquidity of every stock is different, I will assume 2000V could be good for the E-minis, while 1000V could be good for some other stocks. Or should one divide the average daily volume by the number of bars you want to see intraday? TIA!

 

[tradersaavy]

Quote from guy2:

This is actually an exercise to attempt to discover if the tick chart has an advantage over the volume chart and if so under what circumstances. I'm not trying to justify my use of one over the other but rather play devil's advocate with the comments.

I value and respect all the comments that have been made to this thread and thank everyone for their participation.

Oh, my bad. In that case:

TICK charts seem to be smoother than time charts . They produce less false signals for my style of trading.

I'll try to post some charts at a later date.

 

[guy2]

Quote from BENG:

Does anyone have a general rule on how should one setup the volume per bar in the volume chart? As the liquidity of every stock is different, I will assume 2000V could be good for the E-minis, while 1000V could be good for some other stocks. Or should one divide the average daily volume by the number of bars you want to see intraday? TIA!

That's exactly how I do it Beng. If I want to compare one chart to another I'll take the total volume over that time period and divide it by the number of bars generated by the other method in the same time period (tick or time in this case).

 

[BENG]

Quote from guy2:

That's exactly how I do it Beng. If I want to compare one chart to another I'll take the total volume over that time period and divide it by the number of bars generated by the other method in the same time period (tick or time in this case).

Thanks guy2, that would be my method too, just wondering if there is anyone with a different method?

 

[kiwi_trader]

It might interest you to know, guy, that I have created an option under sierra to start a new bar on the basis of either ticks or volume. Thus if the activity was high volume (but low tick) or vice versa it would result in a "market activity" bar.

It will be interesting to see if people end up with 250v180t charts giving better signals than 250v or 180t charts alone?

 

[guy2]

Quote from kiwi_trader:

It will be interesting to see if people end up with 250v180t charts giving better signals than 250v or 180t charts alone?

So if I understand correctly the new bar will be created using (in this particular example) 250 contracts or 180 ticks - whichever comes first?

That sounds intreging. Any chance of posting some charts that show the differences?

 

[cosmic]

that sounds indeed very interesting, anybody knows of a way to do this in TradeStation?

I once tried the approach to build "adaptive" tick bars in respect to time, to simulate (on avg) constant time intervals with
tickcharts -> better for trading with timecycles.

best,
cosmic

 

[slapshot]

Quote from guy2:

This is actually an exercise to attempt to discover if the tick chart has an advantage over the volume chart and if so under what circumstances. I'm not trying to justify my use of one over the other but rather play devil's advocate with the comments.

I value and respect all the comments that have been made to this thread and thank everyone for their participation.

It is my humble opinion that the tick charts shows the sequencing of the trades as they print off more accurately.

With a volume or time based chart, you can lose the sense of how much price change activity took place near the top or bottom of the bar.

If there is an excessive battle near a critical point and the price is fluttering around heavily, then a tick chart will make more bars to illustrate that fact. Or less if it is a light activity period.

There are less gaps and less 'fake-out" candles with long tails. (look at a hammer pattern on a 3 or 5 minute chart to see what I mean - then compare it to the tick chart)

The charts are generally cleaner and in my mind illustrate support and failure of prices better than any other chart.

However, as has been posted already by a wise trader, whatever helps you see/recognize/respond to price is the way to go.

Regards,

Paul