surf with the tick chart?

Discussion in 'Strategy Development' started by flyingforget, Feb 29, 2008.

  1. to me, it is impossible.

    how to surf the trend with this tick chart?
     
  2. it is impossible to me too :) . One way to make money on teek charts for me is use divergetion on spot-futures. I will test this method.
     
  3. Aok

    Aok

    First of all how are you defining "trend"?

    If you are using the time worn adage of "higher highs and higher lows" then yes there are some discernable mini trends there.

    But just like surfing, you have to wait for your set. You cant ride every wave.

    Second of all, trading the Hang Seng is tough enough on 1m charts, let alone seconds or sub-seconds. I hope you are giving yourself enough leeway with a tick value that is realistic enough to execute with the in your face air pocket nature of the spread in HSI.

    Just because there is a trend doesnt mean its tradeable if you can get down to a temporal frame short enough. You have to execute as well.
     
  4. If you are using the time worn adage of "higher highs and higher lows" then yes there are some discernable mini trends there.


    I could identify the trend in time based chart

    I know the reason behind the price action

    but how do you know the reason behind price action in tick charts?
     
  5. I think in this case use a trendfollowing strategies is impossible. Yo must find another method to trade this.
     
  6. <i>"I could identify the trend in time based chart

    I know the reason behind the price action

    but how do you know the reason behind price action in tick charts?"</i>

    Tick charts / volume charts are almost identical in structure. One forms bars when x-number of price changes occur, the other forms bars when x-number of units change hands. Side by side, comparable settings can be matched up almost perfectly between volume and tick charts.

    The benefit to tick / volume charts are smoothed out surges and spikes. Instead of huge candles up or down relative to others on a time chart, tick/volume charts break up those surge prints.

    For traders who work with price action or measurements of price action for trade decisions, that is an important factor for short-term trades.

    Tick charts in continuous setting also smooth out swing trade action across several sessions or more. FX traders who compare tick charts versus time charts will see a significant difference in price behavior recorded.

    Like anything else new to a trader, it takes time to learn the nuances of tick/volume charts. Most traders are by nature Type-A personalities. T-A personalities want it all right now, if not sooner. Trading knowledge and skill development doesn't work that way, which is what frustrates the hell out of most traders.

    Things which are instantly dismissed because they do not provide immediate gratification (i.e. instant understanding) often are invaluable tools when time is taken to learn.