Take for example the above 100 volume gold chart. A candlestick is formed when 100 contracts have been traded. How long it takes depends on the market condition / big boys / how desperate/calm the buyers/sellers are. Definitely when there is a major news/event, a candlestick will be formed in a very short time.
Interesting. And what platform has this type of candlesticks? Tradingview has "volume candle" but it is still time-based and only makes the high volume bars wider.
Why don't you trade Bitcoin? Previously you said the range is small and not suitable for daytrading, but these days it seems to be moving quite a lot?
BTC futures day range is decent. However, the bid-offer spread is horrific; it is in terms of tens of ticks. You can't earn $$$ from day trading when the spread is so wide. BTC futures is quite similar to Chinese Yuan / USD futures, Lumber futures (low volume, huge spread). For other futures like gold, ES, copper, dax, natural gas .... spread is around 1 to 4 ticks.
No. I focus on what happened during the past few minutes to the past few hours. I don't draw any support resistance lines as it is useless/confusing/distracting. ref posting # 946. I drew the vertical purple line. Because I don't want to see what happened to the left side of the purple line. But I keep a 24-hour record of which futures are moving. When a particular futures is moving, it might move again during the next few hours (continuation or reversal pattern) eg dax, gold, oil, copper movement on 30 Apr 2024. Also when a particular futures is moving, other futures might move in tandem, or a few hours later. eg on 30 Apr 2024, gold, copper, crude oil, Natural gas (all USD denomination) all move with some delayed intermarket correlation.
The purple line which I talked about ... I drew it at Asian stock markets open Europe or the UK stock market opens 1.5 hours before the US stock market opens US stock market opens
On Binance futures spread is 0.1$, which is the minimum (if that's what 1 tick means). For me the hardest to trade is when the market is trending strongly. If i am not in the trade before the move happens, i don't know what to do (even though i know the market is moving strongly). Because usually there is no meaningful retracement and i have no idea how to enter and where to place stops. I traded a lot on 1minute timeframe, probably thousands of hours. There were periods when i would make money, but then i would just give it all back when market settled down... Would get my ass chopped a lot, taking random setups counter-context(mostly counter-trend), many times i got it right on 1min timeframe and market went in my direction but i would hold it hoping for a bigger move only to have it reverse against me And then when the move finally happened i wasn't in it. Also lots of top/bottom fishing and i would get it *roughly* right, but then market moved just slightly and stopped me into the bottom or top So i would be getting the bigger moves *right* but end up losing money on 1 minute charts and tight stops Bigger timeframes work for me because instead of getting chopped, i get in on limit orders or when there are clear signs of incoming momentum. But then the problem being is it takes such a long time for setups to happen, it's not very engaging and i lose attention and get distracted. I need something to do/something more fast paced to keep me engaged. Lower timeframes are engaging and make it easy to keep you glued to the screen (but you find yourself trading a lot of non-sense chop). But then again, i would guess that is the existential question of every day-trader. These volume-based candles are ingenious because they adapt depending on market volume(volatility). Of course there is nothing magical about it, but it's an interesting concept and i will be experimenting with it to see if i can make it work. There was a nice impulsive move down on friday in Bitcoin and i watched it happen but didn't take any trades.