Can some of you share your expertise in using tick charts, the set-up, amounts of ticks per bar etc. Today I watched CMRC open with both a 1 minute bar chart and a 25 tick bar chart. The tick chart appeared to lead the 1 minute and identify the exhaustion of the buyers on the immediate opening range with more clarity than the 1 minute bar did. Later in the day, the tick chart did not seem to assocaiate itself as a leading indicator. This leads me to ask some of what the rules are for setting them up. I can choose any tick value, Should this value be pegged to a certain volume for the security in question. I would be obliged to any infomation, pro's and con's. Thnnx. -Hoyler
I'm not aware of tick charts that are configurable as you describe. Perhaps it would help it you mentioned whos charts you're using. Tick charts can be very helpful at times, for entries and exits or for scalping. They can also drive you nuts.
Rfoulk, Tradestation pro is the charting platform. The default values for Tick's are 1, 10 or 25 ticks per bar. Although you can specify any tick value that you wish. I have watched various securities with both a 1 minute and a 25 tick chart as the default. It is apparent me that the tick charts lead during times of heavy volume, i.e., On the open it may take 4-5 25 tick bars to equal a single 1 minute bar. Later, when the volume is lower a lessor ratio can be seen (1 : 1 ratio), as the volume returns to the market after lunch they begin to lead again. Hence my question as to how a professional would set up ticks charts and deal with the volume changes throughout the day. i.e., NXTL, the last 30 minutes offered two nice entries on the 1 minute chart and was lead all the way with the 25 tick chart. Any of you that have experience with Tick charts feel free to jump right in, I would be obliged to all info. Rfoulk, you are right on time with the entries and exits. -Hoyler
I use Tradestation Pro's tick charts as a supplement to tape reading. I'm primarily a tape reader once I get a technical indication for an entry. I usually read the tape with a plain-old time&sales window but tick charts are helpful for me because give me a visual sense of momentum. I suspect that you could probably apply technical indicators to a tick chart. It might be an interesting study.