Why do people use Volume, Range and Tic charts?

fearless9 · Nov 24, 2006

Hello NZDSPeCIALISt

Am I correct to assume you are a fx trader in which case you do not have volume available to you.

I am an ES boy and it is all about volume plus s&r in my camp.
I also use the 3 frames you described but they are quite different as they are 3 expanding views of the bid/ask volume.
Nevertheless, the principal is still the same.

Did I read somewhere that Reuters and CME are going to produce Fx in 2007?
If so, will they capture volume?
regards
f9

nkhoi · Nov 24, 2006

Quote from NZDSPeCIALISt:

...
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, ...

is this the same as the saying trade in the same direction of the higher time frame?

ProfLogic · Nov 24, 2006

Quote from fearless9:

Hello NZDSPeCIALISt

Am I correct to assume you are a fx trader in which case you do not have volume available to you.

I am an ES boy and it is all about volume plus s&r in my camp.
I also use the 3 frames you described but they are quite different as they are 3 expanding views of the bid/ask volume.
Nevertheless, the principal is still the same.

Did I read somewhere that Reuters and CME are going to produce Fx in 2007?
If so, will they capture volume?
regards
f9

f9,

Yes, Reuters & the CME would like to begin offering it in 2007 and yes we will be able to apply volume bars to the end result.

Bill

ProfLogic · Nov 24, 2006

Quote from NZDSPeCIALISt:

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

Keep it up and trade in good health.

fearless9 · Nov 24, 2006

Quote from ProfLogic:

f9,

Yes, Reuters & the CME would like to begin offering it in 2007 and yes we will be able to apply volume bars to the end result.

Bill

Thanks Bill.
I came into this game through the fx door, but switched to futures to narrow the spreads and appoint a referee, namely the CME.
However I like Fx and I will be interested to see how the CME handle it

NZDSPeCIALISt · Nov 24, 2006

Quote from nkhoi:

is this the same as the saying trade in the same direction of the higher time frame?

Almost, but not quite. The trend is sometimes your friend, but sometimes your trend chart is showing a high probability reversal. Momentum charts have not picked that reversal up yet and trend followers go with it (the trend). Then, those who see the reversal formed on the trend chart, wait like a sniper for the reversal momentum signal. By that time trendfollowers are into a trade and most probably are putting stop to breakeven. Then, when momentum/fine tune charts signal reversal - the counter trend traders (who are actually following the 'trend chart' - as oppossed to the 'trend", pounce, and the move is fueled by the stops that trend followers had @ breakeven (who were not following the trend chart - but just the trend). Hope that came out right.

Re CME/Reuters hookup - it will be an excellent source for fx data once it is up and running as it has the best of both worlds (regulated centralized clearing volume data environment of futs and 24/5 liquidity of spot) The purity of tick/volume data will perhaps be unsurpased to use in trading.

ProfLogic · Nov 24, 2006

Quote from fearless9:

Thanks Bill.
I came into this game through the fx door, but switched to futures to narrow the spreads and appoint a referee, namely the CME.
However I like Fx and I will be interested to see how the CME handle it

I can't wait. To me it will like the conclusion to a long journey. The clarity of volume bars overlayed on the huge liquidity of the Fx. I have a few friends that trade 10,000 contract lots now in the Euro for a bank with ease. I will never trade that much but to know that one could trade 500 contracts (US$5000 a pip) makes me giddy.

ProfLogic · Nov 24, 2006

Quote from NZDSPeCIALISt:

Almost, but not quite. The trend is sometimes your friend, but sometimes your trend chart is showing a high probability reversal. Momentum charts have not picked that reversal up yet and trend followers go with it (the trend). Then, those who see the reversal formed on the trend chart, wait like a sniper for the reversal momentum signal. By that time trendfollowers are putting stop to breakeven. Then, when momentum/fine tune charts signal reversal - the counter trend traders (who are actually following the 'trend chart' - as oppossed to the 'trend", pounce, and the move is fueled by the stops that trend followers had @ breakeven (who were not following the trend chart - but just the trend). Hope that came out right.

Re CME/Reuters hookup - it will be an excellent source for fx data once it is up and running as it has the best of both worlds (regulated centralized clearing volume data environment of futs and 24/5 volume of spot) The purity of tick data will perhaps be unsurpased to use in trading.

NZDS, I'm impressed. Well stated!

I've designated specific levels as to where extreme (Prime) Trend oscillations always occur. By doing this I can see where trends beging their migration process (one Trend migrating to the other). This I will leave up to you to find because this area is different depending on the indicator you use. I use the Ergodic with some custom settings I've developed over the years.

NZDSPeCIALISt · Nov 24, 2006

Quote from ProfLogic:

NZDS, I'm impressed. Well stated!

I've designated specific levels as to where extreme (Prime) Trend oscillations always occur. By doing this I can see where trends beging their migration process (one Trend migrating to the other). This I will leave up to you to find because this area is different depending on the indicator you use. I use the Ergodic with some custom settings I've developed over the years.

Proffessor sounds interesting, care to elaborate?

Until recently I payed less emphasis on what I now realise is an extremely important area of trading: the correct calibration of charts.

The indicator I use (cci) is especially prone to having a correctly calibrated chart. Similarly, trading usdjpy (and infact all asian instruments), the power of candlestick analysis is the leading indicator - moreso than western instruments. Finally, doing bar counts/fib time studies is another leading indicator (that I have yet to properly apply to date) that is dependant on having an accurate tick chart setting.

Thom64 · Nov 24, 2006

Quote from ProfLogic:

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

Greetings,

Thanks again for your input,I used your suggested parameters for todays shortened session.I must say that it made a huge difference in my ability to navigate the session.Hit target within first hour,doubled that by noon.

I hope to be able to add some positive information to a great thread.Thanks to all here.The comments about desktop layout makes alot of sense,and likely looked over by many,myself included.

cordially Tom