Why do people use Volume, Range and Tic charts?

[CutsThrough]

Two reasons:

1) Curve-fitting ("My backtest tells me that I have better change when using an 8 min chart rather than 10.")

2) Not wanting to be looking at the same thing everyone else is seeing.

 

[oddiduro]

Quote from ProfLogic:

Thanks for the support guys. I'll try to stay on focus.

When we are currently at a Prime Resistance top as denoted by the indicator. This is established by reading sequential extreme oscillations. Next you see the divergence being created at Prime Resistance. I treat divergence as a warning signal because it is an inconsistent indicator. It is telling me to be careful that we are "in an area where a top COULD occur" but not necessarily WILL occur. The first confirmation I have when a top is setting in is the creation of a resistance oscillation in the price section (green lines) that fails to violate the last resistance top. The green lines are Prime Price oscillation from the next fastest square nested chart. But remember whatever top IS created first in the Price section is, in the beginning, a short term top. If price, verified by the extreme oscillations (Prime) of the indicator first falls to violate the last extreme (Prime) support, oscillates back up to fail the last extreme (Prime) resistance, and then finally falls back to violate the previous extreme (Prime) support again . . . then we have a long term top and we can then expect a longer term pull back.

Simply look at the charts I posted and look first to the indicator to see the Extreme (Prime) oscillations. Those are what is used to create trends. Once a trend is validated one only needs to trade the price oscillation waves in-between the Prime tops and bottoms. In an established Bull Trend the up moves will be stronger and more profitable. In an established Bear Trend the down moves will be stronger and more profitable. Trading the counter trend can be profitable too but there will be less moves inside those pull backs because less strength exists there.

This works because a Trend is strictly defined. It is in no way subjective in its existence. If you want uber-safe trades, only trade in the direction of the established and personally confirmed strictly defined trend. When you do that you can trade a lot of different markets as well. How, because you are only trading markets that are failing Prime Support (creating price oscillations that are failing support) in a Bull Trend or Failing Prime Resistance (creating price oscillations that are failing resistance) in a Bear Trend.

Back to shopping tomorrow guys. Night.

Happy Thanksgiving

Prof it is good to see that you are still teaching

Best Regards
Oddi

 

[Thom64]

Greetings Prof.

Thanks for one of the top shelf topics.

My personality and style suits me for daytrading,with a desired goal of picking up 15 ym points per day x 5 contracts.Initially this looks like an excellent type of read for doing that.

Could you offer any suggestions as where to start for setting up parameters for volume bars?I am using QT,with IB service feed,your thoughts appreciated.

cordially Tom

 

[ProfLogic]

Quote from Thom64:

Greetings Prof.

Thanks for one of the top shelf topics.

My personality and style suits me for daytrading,with a desired goal of picking up 15 ym points per day x 5 contracts.Initially this looks like an excellent type of read for doing that.

Could you offer any suggestions as where to start for setting up parameters for volume bars?I am using QT,with IB service feed,your thoughts appreciated.

cordially Tom

Thank fearless9 for the topic Tom.

For intraday on the YM use the 343V for trend and 49V for entries and exits. For longer term step up the trend chart. The slower the chart increment the more noise is filtered out.

 

[Thom64]

Greetings,

Thanks to Fearless 9,and also to the Prof.

May I ask to all involved how QT would handle this type of trade data.Should I upgrade to dedicated system for futes?

As to the original premise,I understand the concept of tick charts,but am having difficulty understanding the benefit.What would be the primary reason to trade using a tick?

cordially Tom

 

[ProfLogic]

Quote from Thom64:

Greetings,

Thanks to Fearless 9,and also to the Prof.

May I ask to all involved how QT would handle this type of trade data.Should I upgrade to dedicated system for futes?

As to the original premise,I understand the concept of tick charts,but am having difficulty understanding the benefit.What would be the primary reason to trade using a tick?

cordially Tom

It is explained in detail earlier in the thread.
Great Trading.

 

[NZDSPeCIALISt]

After a week of exhaustive study - I have found that the best way in my of style trading is to begin by working out the tick chart size for the fastest chart and apply a multiple to it to figure out the rest.

Fastest chart: Amazingly, if I select a tick number that gives me one bar per minute during 'regular' trading hours - then this seems good. One minute seems to be a fundamental time slice that works well as a timing/fine tune chart. If you have esignal and look at the full SPX$ index - 3 tick is about right at present.

My favourite multiple for tick charts is 4. Thus in this example, 3/12 for timing charts - not important unless in the zone - best to ignore in the normal course.

48t as main. That and 196t for momentum analysis. This is what occupies my central field of vision - timing charts on left side (right brain active - creative side so as to be more flexible with entry parameters) and trend on the right side.

Trend is one notch more - 780t. Candlestick signal originates here for the substantive moves and then follows on up in fractal like manner through the momentum charts and finally will show up in the timing charts just before entry. I do not know why this occurs, but it happens with strange and repetitive regularity. Anyone have an idea on this phenomenon? (hindsight traders need not reply).

I do not believe that the number is important - rather to look at a fixed ratio so that the entire spectrum of charts will change bar on the same second that trend chart flips to a new bar.

As has been said previously in this thread, price moves in a seemless continuum and what is important is to see the big picture and not get bogged down in the technicalities. This particular arrangement of charts provides a sturdy and fixed environment in which to view slices of this price continuum - the inner voice is given a strong crucible to develop within the confines of structure that comes from experience.

Once again thanks to the many contributors to what is one of the least talked about yet fundamental aspects of trading - the trading desktop.

 

[fearless9]

Quote from Thom64:

Greetings,

Thanks to Fearless 9,and also to the Prof.

May I ask to all involved how QT would handle this type of trade data.Should I upgrade to dedicated system for futes?

As to the original premise,I understand the concept of tick charts,but am having difficulty understanding the benefit.What would be the primary reason to trade using a tick?

cordially Tom

Glad to be of help.
These are fundamental issues usually glossed over by many people.

 

[fearless9]

Quote from NZDSPeCIALISt:


Candlestick signal originates here for the substantive moves and then follows on up in fractal like manner through the momentum charts and finally will show up in the timing charts just before entry. I do not know why this occurs, but it happens with strange and repetitive regularity. Anyone have an idea on this phenomenon? (hindsight traders need not reply).

I DONT QUITE UNDERSTAND WHAT YOU ARE GETTING AT ::LEASE EXPAND


As has been said previously in this thread, price moves in a seemless continuum and what is important is to see the big picture and not get bogged down in the technicalities. .

WELL PUT :::: THIS IS THE HEART OF TRADING

 

[NZDSPeCIALISt]

Quote from fearless9:

Quote from NZDSPeCIALISt:


Candlestick signal originates here for the substantive moves and then follows on up in fractal like manner through the momentum charts and finally will show up in the timing charts just before entry. I do not know why this occurs, but it happens with strange and repetitive regularity. Anyone have an idea on this phenomenon? (hindsight traders need not reply).

I DONT QUITE UNDERSTAND WHAT YOU ARE GETTING AT ::LEASE EXPAND.

Basically, the slowest chart will develop a signal. When it is firm and the signal is fully developed, the momentum charts will afterwards position themselves in such a way as to give a signal in the same direction as the trend chart. Once that signal is in place, like magic, the timing charts also, after the momentum charts have positioned themselves, come into a pattern right about the time that what I call a "momentum explosion" takes place - it hits the bullseye fast . Usually the first confluence of such events is strongest.
It seems that the trend chart "reads" investor sentiment of the market but is unable to pin-point an entry. Momentum charts try and catch up to that thought wave in natural harmony, yet do not have the capability to get into the 'nitty gritty"(at this point some traders just place limit orders on swing hi/lows rather than getting involved with the fine print). Then the timing charts, which are usually the least reliable in day to day trading (1 min.-5 minute), after all of these events are in place, will absolutely nail the move right before it takes of.

All 3 time scales need to be looked at as one - not seperately. This phenomenon is well known in time chart circles (daily/weekly/monthly etc), but intraday, using tick charts, there is little research done thus far.