Overall thoughts? I’ve been a strict time based chart reader, in the vein of: if it ain’t broke, don’t fix it. Anyhow, I’ve been thinking a lot recently about how arbitrary time is, and how tick based charts are probably the most accurate reflection of the overall market structure. Have you transitioned to tick? Did you just slide right in? Any gotchas I should be looking out for as I toy with making the switch?
Nothing like "seeing it for yourself". Suggest running the two simultaneously and seeing if there is some insight to be gained.
No; I decided against it: ticks don't distinguish between one-contract and 1,000-contract transactions. So to put it mildly it doesn't strike me that a tick-chart is "probably the most accurate reflection of the overall market structure". I've transitioned - long ago - instead to constant-volume charts (and never looked back).
W/ respect to price Time chart: Time is a constant. Variables are trades & volume. Tick chart: Trade is a constant. Variables are time & volume. Volume bar chart: Volume is a constant. Variables are time & trades. and so on w/ different types of price representation. So it depends on what do you want to measure then that's what you want to use. PS: Precisely why angled trend lines don't convert well from one type of chart to another.
Never had access to Tick as a fast trader, might suite me, increased detail is always important, I watch the big jump around if it retraces up say, then gets instantly slapped back then I view that as SELLERS at that time, getting out quick and stay away basically, Tick wouldn't give that, atleast not any more so. I did try 5second and 10second charts, might look them up again.
Most data providers don't give you all the ticks and the ones who do, there is just so much bandwidth and if you running 2 plus data feeds, the one getting all the ticks can get slow on very active day. But if you running some type of system where you integrating both ticks and time based into one system, you certainly not scalping. What I have always found interesting, I trade some tick system during the day and mark all the trades on charting, then refresh at night, getting a total different chart.
In my eye the volume bar charts show changes in momentum real nice... something I look at as we approach s/r levels.
One advantage ticks and volume bars have over the time ones is in a situation when the breakup(breakdown) is defined by the bar's close under(over) S/R. If this breakup(breakdown) happens and it is very potent , then in case of the time charts you sit and wait the close of the bar ( and it will be long bar , sometimes very long ), while in front of your eyes market runs away from your position (which should be closed and reversed). In the same situation tick or volume charts will close much earlier allowing you to react to the situation in the more timely manner.
Here are 3 charts of the ES side by side (15 Min, 1700T and 6500V). These values are just so there would be an equal number of candles on all three charts. They all show both the top and the bottom in their own way and they all maintained lower highs on the down trend. Coffee Tawk, discuss amongst yourselves...