Why do people use Volume, Range and Tic charts?

[ProfLogic]

Quote from kiwi_trader:

I released a dll that lets Sierra Chart users have fixed cap volume bars (it prorates "overvolume" to further bars). The SC guys plan to release and internal version soon.

I am curious about your language ... you say cap ... do you mean that "if more volume arrives (or a single tick has more volume than a bar) then they ignore that volume as opposed to prorating it to future bars?

If that's their approach then my dll users will see a different result. Can you clarify so that I can give them an option to have the "same" volume bars?

User defines 500 Volume Bar chart.
Current bar has 400 contracts.
Order comes through for 205 contracts.
100 is added to current bar to cap it at 500, remaining 105 contracts go to start new bar.
This is correct use.

 

[ProfLogic]

Quote from Jack Nestle:

Esignal appears to have corrected the volume bar issue.

That remains to be tested.

 

[brownsfan019]

Quote from Anekdoten:

Brown,

I'm looking into Multichart. In your experience do they fail to provide constant volume bars ?

Thank you for insight.

Anek

Anek,
MC provides perfect CONSTANT volume charts. The issue I've seen is the data source and how it flows into MC and possible discrepancies from there.

 

[brownsfan019]

Quote from kiwi_trader:

I released a dll that lets Sierra Chart users have fixed cap volume bars (it prorates "overvolume" to further bars). The SC guys plan to release and internal version soon.

I am curious about your language ... you say cap ... do you mean that "if more volume arrives (or a single tick has more volume than a bar) then they ignore that volume as opposed to prorating it to future bars?

If that's their approach then my dll users will see a different result. Can you clarify so that I can give them an option to have the "same" volume bars?

kiwi,
Is this a recent dll that you made? When I tested Sierra and added the dll I found on their forum from you, it did not correct the constant volume chart issue.

 

[avalanch]

Quote from ProfLogic:

Price & volume run hand in hand. Price movement or oscillations are the reflections of the sentiment or the emotions of the individuals that trade inside of any market IN REAL TIME. Volume shows the amount of that collective sentiment that is effecting the market at any given moment. Time is the monitor where we view a combination of price and that sentiment.

The most common viewing options for traders are Minute Charts, Ticks Charts, Range Bar Charts and Volume Bar Charts to use as that monitor.

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)

Price will always be stable because it can not be manipulated. It is a perfect reflection of any Market at any given moment (past & present). Volume Bar Charts then give stability to Volume and Time (Chart Increment). The user (YOU) define the number of contracts or shares that make up each bar. Less contracts or shares gives you faster charts and would be used for intraday or scalp trading. More contracts or shares traded per bar gives you slower charts and would be used for Swing, Position or Long Term trading. The environment is now perfectly viewable, stable and non-varying. You now need to choose the chart increment to best suit your trading style (Intraday, Swing, Position or Long Term) and as stated earlier, spend the screen time to learn just exactly what does price do consistently in the "time frame" that you wish to trade.

I don't use the term "interrupt" because it implies a subjective action. I prefer "read" because what the ultimate result of this environment is, is to be objective in your decision making process trading on price consistencies.

Price does move methodically. One just has to view it in a stable non-varying environment to see it.

PL, could you elaborate on user defined volume bar charts, and possibly post a chart to illustrate.
Thanks

 

[brownsfan019]

Quote from avalanch:

PL, could you elaborate on user defined volume bar charts, and possibly post a chart to illustrate.
Thanks

av - you'll need to go through this thread in its entirety as the info you seek is here. Maybe prof will repeat himself again, but it's here. It just requires a little work to read through the thread.

 

[TradEStar]

And just for fun, I will throw in a new one....."pc" charts.


...or "price change" charts offered by Esignal which is different from a tick chart. The "pc" charts measure price changes as opposed to ticks.

 

[javs5150]

Quote from TradEStar:

And just for fun, I will throw in a new one....."pc" charts.


...or "price change" charts offered by Esignal which is different from a tick chart. The "pc" charts measure price changes as opposed to ticks.

What is the advantage of "pc" charts over tick or volume charts?

 

[TradEStar]

Represents price action in a more clear view as opposed to a tick chart. Areas of congestion, price runs, and typical cyclical price movements are more defined and less whipsaw looking imo.

 

[ProfLogic]

Quote from TradEStar:

Represents price action in a more clear view as opposed to a tick chart. Areas of congestion, price runs, and typical cyclical price movements are more defined and less whipsaw looking imo.

What is the definition of a "PC - Price change" chart. Sounds like a Range Bar chart.
Thanks.