Why do people use Volume, Range and Tic charts?

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Quote from dandxg:

Pro Logic........if I could bother you with a couple of more questions? What do you have for prime resistance for ER2. I am looking at 16807 v chart? I can only go back 45 days for now, until Monday when I can access to more data. I would show it as 780 going back to 10/17/06 and support being 760, those being the highest high and the lowest low for that time period. I am rounding down to 780 for the recent high as I believe market psychology likes round #'s.

If my thinking would be correct please confirm. I would take the high and low from this time period, however far I can go back, and this would be prime support. These would be my strongest S/R line to trade off with an entry off of the 2401 chart? Am I following so far? Then I could create minor S/R line off of every swing hi/lo on the 16807 v chart and trade off of those as well on the 2401v chart? These would not be as strong since they are no prime S/R right, especially if they are counter trend to the overall trend on the 16807 chart? How my thought process so far? On track? Thank you very much for taking time to help me out.

Best Regards,

Dan
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I'll list the sequential Prime Resistance and Prime Support levels so you can match them up. Then yo can see from this point on at what levels they occur. I will go backwards from current.

Prime Resistance - 799.5, 736.8, 788.2, 690.1 & 648.4 (March 05)
Prime Support - 671.2, 673.4, 616.2, 568.7 & 604.0 (January 05)

The current Prime Trend on this chart is Prime Bull. What is happening at the current Prime Resistance top is that Divergence has been created and price is currently consolidating up toward 791.4. Now that I have described what IS happening, look at the chart.
 

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Now look at the 2401. This chart shows the transition of price from the 799.5 Prime Trend Resistance top. On the 2401 we see that this chart has Primes as well but these do not determine Trend (In this particular environment). These Primes are just pinpointing trading opportunities.
 

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Quote from gurucandidate:

Thanks to everyone, specially to ProfLogic for this great thread.

I thought I'll share some of my observations because I recently started using sized tick charts in my trading again and it's been making a difference.

I have been trading off and on since the late sixties. My first experience with tick charts was on Quotrons in the early or mid seventies but they were showing every tick. Traded ag futures then and the tick charts would have usefulness only when the market was wild. Because frequency of ticks went off and on like a light bulb I did not think of it as a better source then the time charts. Frankly I would gravitate to markets where the action unfolded normally on my 60 min or daily charts. The mention of ticks would mean intensity which I would rather avoid.
Also the range and commission structure would not be always conducive for making vs trades and at that time I did not think of using tick for building charts of larger scales.
In addition I found myself losing perspective going into such detail and kept going back to ID time bar charts.

I traded on one of the floors in NY for a few years and I did not find the answer to the off and on intensity and found support and resistance levels, pivots and reading other trader's faces and pit noise more useful then processing ticks in my head.

Fast forward 20yrs to a few months ago, I have been gravitating to the ER2 because it is a great $ mover but it also bounces around a lot which fits my style of off floor market making, scaling up and down.

I started pulling up tick charts in my new TS platform(IB, where I have traded for years does not offer tick charts)and to my surprise, because the ER2 is so active, everything that I have learned and developed and used on time charts seems to be applicable to the scaled tick charts.

I use a 34 tick chart for the ER2 and a 1 minute and a 5 minute. Basically the 1 min and 5 min are for perspective. I also look at the 60 min and daily after the session and log onto another board for trader sentiment after the session.
So basically I have my bearings - and sometimes bias - but I use the tick chart for deciding what to do and when. I have found that higher frame tick charts may end up looking close to some 1,2,3,5,10,30 etc min charts so the time charts are ok for me to get perspective. I also find that watching the other eminis is distracting.
I have been doing well to begin with but reading potential id turns on the 34 tick with one constant price band and one canned oscillator study I get a good sense when not to go against the market. This has raised my comfort level quite a bit and I can quit earlier in the day.

So, to answer the question of a poster
early on the thread, the markets have evolved to a point where the liquidity, price delivery, order entry and commission structures make it practical to use tick charts to read market action.

This thread contains so many worthwhile ideas to check into and great illumination but for now I'll just stick to what works for me.

I am not a native english speaker, now I have to look up ergodonic. :)
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In regards to Ticks, GLOBEX no longer provides constant ticks so any consistent benefit they used to provide has been rendered useless.
 
Here is a definition of Ergodic:

http://en.wikipedia.org/wiki/Ergodic

About the creator of the Ergodic:

"Mov( ( RSI(8) - LLV( RSI(8) ,8 ) ) / ( ( HHV( RSI(8) ,8) ) - LLV(RSI(8),8) ),3,E) *100

Roger Altman, William Blau, Stanley Kroll, and Tushar Chande have all improved on J. Welles Wilder's Relative Strength Index. I believe the best of these derivative indicators is the Stochastic RSI. MetaStock offers one version of this indicator on their formula page. This version is just one of many I use. I like substituting the numbers 3, 5, & 8 in this formula."

There is a book from Wiley regarding the Ergodic as well.

Here is a link to the Google search for the phrase "Ergodic Indicator".

http://www.google.com/search?hl=en&lr=&rls=com.microsoft:en-US&q="Ergodic+Indicator"&btnG=Search

To clarify, the phrase, "Ergodic Literature" has nothing to do with your question regarding the indicator.
 
yes, as you are wrought to do--using archaic language to describe the commonly understood in an attempt to create expertise: LOL !

you are simply using the "old" language to re-describe what has already been discussed to death in trading circles.

ergodic is simply the old word for chaos theory when used in this context.




:D
 
ergodic is simply the old word for chaos theory when used in this context.
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sorry, but you are not skilled math person (at least in probability theory and dynamic systems theory)...
 
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