Anyone knows book/website teaching how to use the tick charts? It seems this is a rarely discussed topic.
ADX... if your name indicates your style, you might get some info from glassinc in the chat room. I don't know if he uses ADX on the tick chart. He will be there today. I think Don Bright uses the tick chart, try PM'ing him. Good luck and remember....
I know many people use tick charts to trade the eminis. I've looked at it, and they seem good - but I don't think they really make any difference. Why? Because of the level of precision required. Is your (or any) data feed precise down to a single tick? Where does your charting package start counting the ticks - for example, on a 100 tick chart, where does tick 1 start? Why? It's like using a 12" rule to measure a mile length of road.
I use a 45 and 120 tick chart both to help me refine an entry for my trades. It reduces my risk, while at the same time giving you the opportunity to particpate in the larger pattern. Brandon
If you are missing, say, 90 ticks between 9:30 and noon, isn't your 45 tick chart now going to be "off" by 2 bars for the rest of the day?
Hey Adx trader...I trade 100T charts. Why?...because I like them. They seem to offer a clearer picture of the markets pulse to me. I've attached a 3 minute chart from 8:30 to 10:00 and a 100T chart from 8:30 to 10:00, also. Personally, I just think 100T draws a better chart. As far as settings go, I use 100T because that's what I finally decided I liked best. Other popular settings are 77T,133T,210T and343T. Most of the traders on this website use tick charts. I think they have a chat session once a week, so you can probably get more answers there. Hope this helps and good luck! www.dacharts.com/index.php
We use tick charts primarily to track the futures (S&P's). We keep the spot tick chart next to the futures tick chart, along with a window showing Fair Value, so we can see at a glance if we should be entering or exiting a trade. You really need to see every tick, since minute charts (or longer) are too wide a time frame. Don
Breakout and Don: Thank for your comment! How could you specified the number of ticks to dispaly? My system seems to only dispaly tick-by-tick charts. What software are you using?