Is there any particular insight that time charts have to offer that isn't included in tick, range, and volume charts? I use tick, volume, and range charts in tandem, comparing the same market from the slightly different perspective of each chart. My quandary is whether or not to integrate time charts into the mix. They seem to me not only irrelevant, when compared with the other types of charts, but potentially misleading as well (e.g., when trading is slow and the market is marking time, momentum indicators respond on time charts, but on tick chart and range charts, they just hold steady). What do you all think? Is there any good reason to use time charts if one has access to the other types of charts? Thanks.
Maybe you can post a few charts for comparison? I actually wish I could use non-time based charts but am locked into current software that doesn't have it.
I supose it depends on how you trade, but I find tick and volume charts to be most useful. I sometimes look at a 5-minute or even 15-minute chart for big-picture analysis, but tick and volume charts are what I use for my trading (entry, exit, stops, etc.). When the market slows down, I use a faster tick/volume chart depending on trend/momentum, etc. When it gets really slow, it's mostly noise anyway, so I just step aside and wait. For my style of trading, range bars give me less information, not more. But everyone has to figure what works with his/her own style of trading.
Time charts get all traders to look at the market from the same perspective. 15min, hourly, daily, weekly charts are looked at by all pros and institutional traders. Volume, tick, range-bar charts are something very subjective. Market flow and price swings are the same because it's our convenience as traders to split market flow into different types of bars, being them time-based, volume-based, range-based etc makes no difference. Eventually, it all comes down to what works better for each of us individually. If you think tick charts or volume charts offer a better advantage over time charts, then continue to use them.
Yes, time charts can serve as a self-fulfilling prophecy, as fseitun implies. If everyone is looking at the same charts and acting on them accordingly, that should impact a market. On the other hand, it seems to me that trading on the basis of a chart that everyone is using is the very definition of trading with the herd. I guess you could do something fancy like look for divergence between time and tick charts and take that as a high probability opportunity to get in on signals from the tick chart. Just a thought on the fly. I like range charts exactly because they give less information. Sometimes it's nice to have feedback based purely on price. I would refer Risktaker to Sierra Charts for a free two-week trial so you can play around with all these types of charts.
Each type of chart has benefits. As suggested I agree it is best to implement a variety and see what works best for you.
As tomdavis wrote, it depends on how you trade. I used time charts to reserach and write my systems, but time charts have only placement value in my trading, with zero effect on when I trade.