Tick Chart--Can someone give a good explanation

EliteTrader Friends,

No one seems to be able and give me a good explanation of a tick chart. For example, if you have a 144 tick chart up on a screen, how can you have more than 144 contracts execute on a time interval? I am trying to understand the subtlety of a tick chart. Is 144 the number of contracts? Is 144 the number of transactions? Is it the number of times price changes 1 tick either up or down? Would sure appreciate some help.

Achampagneguy

 

144? Is that the maximum number of ticks that can be displayed on your screen?

 

Achampagneguy,

One Tick = One Transaction
144 Ticks = 144 Transactions

There can be....any number of contracts....traded per One Tick transaction.

Example:

You go to the store....purchase 10 items....but when you check out....you have One Transaction. The next time you go to the store....you purchase 1000 items....but you check out....with just One Transaction.

So....once 144 transactions are completed....you move to the next Candle or Bar.

VSTscalper