I`m pleased to say that the 1000-volume chart for ES is starting to talk to me. I like it and I believe I may find some added value here. The range chart is discarded. I tried various settings, but I just don`t like it. I don`t like the premise behind it either. Undecided about the tick chart at the moment, but I think I may have to let that one go, unless I discover something of value.
I`m doing a comparison between tick charts and volume charts right now, specifically the 1000-volume VS the 233 tick chart for ES. In my opinion, they essentially provide the same information, so I don`t see any added value from the tick chart. I like the premise behind the volume chart and can use that as a gauge for activity and volume. Tick charts have a similar premise, but price change does not necessarily equal volume. Either way, I do not think the difference is significant, at least with these chart settings. Any opinions with regards to tick versus volume? I don`t see any need for a faster chart for my needs. The 1000-volume is more than enough in addition to the 1-minute and 5-minute. Thanks, LF.
233?? You have something against round numbers? Only that the accuracy may depend on your data provider.
Having spent literally thousands of hours looking at price charts and playing with different time frames and charting methods. No, it doesn't matter. Which is why I never understood peoples obsession with choosing fib based numbers of ticks or volume.
Volume and tick charts really show their value during periods of heightened volatility when single price bars become very large. In this example, price bottomed out 40 seconds prior to the 8.5 point 1-minute bar closing. Observe the corresponding dots on each chart. Also, observe how compressed the period prior to the breakout is on the volume chart. It contains 3 hours of price action, while the latter half of the chart after the breakout contains 20 minutes of price action. I`m also learning that the volume chart contains valuable information with regards to reading price at swing highs and lows.
I`ll let you know when I start "Swing/Position Trading - Time Based Charts VS Price Driven Charts". Hard to avoid reading the advice of idiots in this world, but I don`t have the habit of taking it.
Any news here? I've started looking at price/volume driven charts again. As said already, volume charts (and similar charts) seems to shine during periods where time based bars (I typically use the minute chart) gets large and/or choppy. At those times, volume charts can help clean up things and allow you to better visualize and read what's going on.