Tick Chart vs Minute Chart

Discussion in 'Technical Analysis' started by traderharley, Jan 25, 2011.

  1. Hello Everyone,

    I am new to day trading, and I use minute charts, and when I read here, many of you use Tick Chart to trade, what the advantage does Tick Chart have over Minute Chart? Thank you so much.
     
  2. Rather than a tick chart, I run a one-second. A pure (unaccumulated) tick chart skitters off the left side of the screen too fast.
     
  3. Thank you Arthur for your input.

    Anyone else has an idea? Why use tick chart over minute chart?


     
  4. jokepie

    jokepie

    After a while you will not care about this.

    Howevr, untill you start FEELING the price action, tick charts usually move FASTER in higher momentum times, so you will have higher conviction in your trade.
     
  5. Indeed, if the Opie wants a tick chart for the conviction of its speed, the blur of a screaming T&S would work as well, and be equally unreadable.
     
  6. could you explain please how you do this?
     
  7. Nothing fancy. ESignal allows charting on a one-second time frame. And you can run your own homegrown software scripts at that rate, also. That facilitates handy visualizations like a graphical representation of T&S, the spread, and the premium. None of these have the least utility in trading, but watching them keeps my head from hitting the desk when trading is slow.
     
  8. This question is like asking whether someone prefers red or white wine.

    What about champagne?

    Minute Charts = A time based chart where each bar contains a varying number of contracts or shares traded per bar based on the specific activity during the users define time frame of the chart and the time of each bars creation.

    (Problem - The markets are traded in shares or contracts not time. Time being a huge variable, the volume weight of each bar is different throwing off the entire balance of the chart making any consistent evaluation of this chart or the individual bars are weak at best.)

    Tick Chart = A transaction based chart where each bar contains a specific number of transactions per bar but a varying number of contracts or shares traded per bar based on the specific transaction's activity during the time of each bars creation.

    (Problem - Similar to time charts, the markets are traded in shares or contracts not time or transactions. Time being a huge variable, transactions aren't any better since GLOBEX decided to split up transactions at their leisure. Again the weight of each bar is different throwing off the entire balance of the chart making any consistent evaluation of this chart or the individual bars almost as weak as the time charts.)

    Range Chart = A chart where each bar's volume weight is based on a user defined price range. Once that range is exceeded, higher or lower, a new bar is created. The bars in this chart type contains a variable of transactions per bar & a varying number of contracts or shares traded per bar based on the specific transaction activity during the time of each bars creation.

    (Problem - Similar to time charts, the markets are traded in shares or contracts not time, transactions or predicted ranges. Again the weight of each bar is different throwing off the entire balance of the chart making any consistent evaluation of this chart or the individual bars even weaker than even time or transaction charts because even more of a variable aspect of the chart is created by limiting the range of the bars.)

    Volume Charts = A chart where each bar contains specific user defined number of contracts or shares traded, devoid of time, range or transactions. A smaller number of defined shares or contracts per bar, for a typically active symbol, shows as a faster chart and would be used for intraday or scalp trading. The larger the number of defined shares or contracts per bar, for a typically active symbol, the slower the chart and would be used for different lengths of swing or position trading. No individual evaluation of each bar is needed because they are equally weighted based on volume unless your method of trading is bar based, then the accuracy of this chart type improves your consistency 100 fold.

    (Problem - The only problem here is getting traders or investors to admit (or even test) that eliminating the variable aspect of their charting is an improvement over the typical random chaos that their normal charts create. The markets are traded in shares or contracts not time, constant volume charts eliminate that purposely created variable aspect of charting. Eliminating the variable aspect of any equation is an asset and benefit not a liability. Here the weight of each bar the the chart is identical giving perfect balance to the chart so making consistent evaluation within this chart's price direction and directional strength stable and stronger than other chart types.)

    I have yet to have anyone make a valid argument that purposely injecting a variable or chaos into a stable environment is a benefit to evaluating the outcomes created in that environment.
     
  9. I think you have been drinking too much champagne professor.

    Minute charts throw off the entire "balance"? WTF... LOL
     
  10. Thanks a lot ProfLogic, and I have too limited view to include another option - "champagne".

    I will print your post and go back to charts to learn advantage/disadvantage of each chart.

    Thanks again!
     
    #10     Jan 25, 2011