Why do people use Volume, Range and Tic charts?

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The key, as in much of trading, is to understand the distortions one produces in filtering information. For such a clear visioned participant there are no illusions.

Nirvana is near.
 
Quote from Charly:

Quote from ProfLogic:


1. Minute Charts - Varying number of shares or contracts traded per bar. (Volume unstable)
2. Tick Charts - Constant number of Ticks but still a varying number of shares or contracts traded per bar. (Volume unstable)
3. Range Bar Charts - User defined bar range but still varying number of shares or contracts traded per bar. (Volume unstable)
4. Volume Bar Charts - User defined number of shares or contracts traded per bar. (Volume Stable)

Prof

thanks for taking the time.

So - CVB appears to be a VOLUME BAR chart - right?

The C in front of VB had confused me
apparently.

Charly
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CVB is just the abbrevation for "Constant Volume Bar". You want to make sure the charting software you are using is creating the bars by capping the amount of volume based on a specific amount (user defined).
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Quote from kiwi_trader:

The key, as in much of trading, is to understand the distortions one produces in filtering information. For such a clear visioned participant there are no illusions.

Nirvana is near.
More...

Remember that viewing the Markets using CVB charts is not distorting it but clarifying it by eliminating the time/volume variable. Anytime you and eliminate the variable aspect of any problem the result is a more accurate conclusion.
 
CVB is just the abbrevation for "Constant Volume Bar". You want to make sure the charting software you are using is creating the bars by capping the amount of volume based on a specific amount (user defined). [/QUOTE]


Thanks again - Prof

scratching my head, too -

in fact my software does however, I wonder how to find out whether or not it is being done correctly.
I 'm by no means a programer.

Does anybody know the trick?

Thanks
charly
 
cause they want to feel they have smthg special that noone else has.. doh
(i use a 68 1/2 tick chart .. loosers use a 69 .. hehe)
 
2. Tick Charts - Constant number of Ticks but still a varying number of shares or contracts traded per bar. (Volume unstable)


Just a comment. The tick charts that I use only "tick" when a trade takes place, and are not necessarily on a "constant" number of ticks per minute or other time frame. I monitor the Spu's closely, and with the self-calibrating tick chart, we may see 10 minutes or an hour in the same size chart (horizontal), and, because of the self-calibration, the vertical axis may be 1.00 or 10.00.

FWIW,

Don
 
in fact my software does however, I wonder how to find out whether or not it is being done correctly.
I 'm by no means a programer.

Does anybody know the trick?

Thanks
charly [/B]
More...

Charly,
Just put up a volume histogram. If the histogram doesn't have peaks and valleys you are good to go. However, if their are peaks and valleys in the histogram you know the bars are not being built correctly
 
I like to use volume charts for the stocks that I have started to trade in conjunction with the method I use for futures trading, and I have been very impressed with the results. I have been using 10,000 to 25,000 share volume charts on various listings....JPM, LEH, GS, MS, etc. The SPY I still use a tick chart and that works great for it. The system for futures is "automated", so now I need to do all the conversion work for stock trading (and trading prop).
 
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