Why do people use Volume, Range and Tic charts?

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Quote from mikesch:

Thanks ProfLogic

Could you possibly post an ES chart showing how this momentum correction played out?

Was the correction low the 139775 print during the Sunday night session?
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It is the same as the previously posted ES chart (Trend Chart) except it shows the 1387.50 Prime Support bottom. The correction low as you call it, I call it Prime Trading Confirmation of Prime Trending Support, is 1401.50 as I stated earlier. There was a minor confirmation of the 1387.50 Prime Support bottom at 3:15 pm on EST Friday, but I tell traders it is preferred if they take the trades from Prime oscillations because it is safer. You know, less risk. I don't care about leaving, money on the table if I can trade consistently with minimal risk.

Long Entry - from the 1401.25 oscillation
Long Entry - from the 1406.00 oscillation
Long Entry - from the 1410.00 oscillation

The next chart I post will be the trading chart of the same increment. The next fastest nested square.
 

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Here is the trading chart showing the same increment. Prime is above and below the horizontal black line. Everything that is not Prime is Minor except when effected by Divergence or Convergence to draw price into a Prime level.
 

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Quote from JimmyJam:

... when my money says if we get a buy signal tomorrow (see previous chart and setups described by ProfLogic) I'll be taking it.
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"The knowledge that we consider knowledge proves itself in action. What we now mean by knowledge is information in action, information focused on results."

- Peter Drucker
 
Quote from JimmyJam:

A couple more items:

If you are taking a divergence signal, you need another indicator to confirm it.

A SMA 20 is as good as any.

For example, here is an example where the SMA 20 does confirm the divergence ...
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JimmyJam,
I noticed that you use the 20 SMA for confirmation of divergence (as well as for dynamic support/resistance) on the 2401 tick or vol. chart you posted a couple of pages back.
Just a small querie of mine but why not the 21 SMA (being a fib number - not that it matters much)? Alternatively, the popular 34 EMA is another possibility with similar performance characteristics, as well as the 30 WMA which is another one that I have heard of traders using. Basically how does the 20 SMA stack up with other stuff you've looked at.

I stopped using MA's a while back (correct me if I'm wrong but I gather that ProfLogic also doesn't use MA's). Nevertheless, periodically MA's re-appear onto my charts so I was interested to know what research you have done thus far (and are prepared to reveal). I guess you have spoken at length on your Trading the Pivots thread but I was wondering has any of this info changed since going from time charts to tick charts (I remember you use/used to use a 5 minute chart before as main). Thanks in advance.
 
JimmyJam,
As a follow up point of discussion re: MA's on tick charts - if your nesting your charts in the 343/2401 fashion (7 square) isn't the 20 SMA on the 2401 vol. basically the same level as the 140 SMA on the 343 vol? If so then the faster time frame would signal the divergence (when price for example closes past it in the direction of the slower chart) and perhaps get in before waiting for full bar close on the slower time frame. Infact you could also add a trendline break nuance on price and find that trendline break and crossing the MA (on the fastest timeframe) happen within a bar or two of each other. Sorry to drift off topic a bit..

By the way - have the 20 SMA up on my charts today and will forward test it.
 
Quote from NZDSPeCIALISt:

JimmyJam,
As a follow up point of discussion re: MA's on tick charts - if your nesting your charts in the 343/2401 fashion (7 square) isn't the 20 SMA on the 2401 vol. basically the same level as the 140 SMA on the 343 vol? If so then the faster time frame would signal the divergence (when price for example closes past it in the direction of the slower chart) and perhaps get in before waiting for full bar close on the slower time frame. Infact you could also add a trendline break nuance on price and find that trendline break and crossing the MA (on the fastest timeframe) happen within a bar or two of each other. Sorry to drift off topic a bit..

By the way - have the 20 SMA up on my charts today and will forward test it.
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Hey Nazz,

The Long&Short answer is that I don't use MA's to determine trend either, but I find that they do a pretty good job on the greater volume series of the two groups to show me the true nature of price action.

For instance, this uptrend is obviously consolidating, and while it might sell-off today, I'm not really looking for that type of action just yet.

And in reference to the MA's the 34 ema, while a step behind the 20 sma, actually does a much better job of holding the trend when price action starts to move in one direction for an extended period of time (chart).

Regards,

JJ
 

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Wow... great thread.

Thanks for sharing Prof.

Thanks to Fearless9 for pointing me in this direction.

One suggestion to the mod's though - might want to change the title of this thread to Volume Bar Analysis. I did a search for this and normally would have skipped this thread b/c of the original title. Just an idea.
 
Quote from brownsfan019:

Wow... great thread.

Thanks for sharing Prof.

Thanks to Fearless9 for pointing me in this direction.

One suggestion to the mod's though - might want to change the title of this thread to Volume Bar Analysis. I did a search for this and normally would have skipped this thread b/c of the original title. Just an idea.
More...

Hats off to Fearless9 for the thread and I'm glad my sharing has been of benefit.
 
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