Volume vs Tick charts

Discussion in 'Technical Analysis' started by lwlee, Feb 29, 2008.

  1. lwlee


    I've been studying AHG thread and incorporating different types of charts into my daytrading.

    For daytrading, what's more effective, volume or tick charts? Indicators like stochastics produce different signals so it can have an impact on entries and exits.

    I've been using 5000 volume charts and 200 tick charts.

    Also how about OHLC versus candlesticks? Tried both types on the charts and OHLC bars appears clearer to follow.

    Right now, I'm leaning towards OHLC volume charts but would appreciate any opinions. Trying to narrow down the number of charts I have to keep track of.
  2. lwlee


    futures. er2, ym, es.
  3. Lucrum


    I prefer time(minute,daily...) charts myself but I do enjoy experimenting with various other charting methods.

    As for bar or candle, they both show exactly the same information. The candle just has a "body" between the open and close which I prefer just so I can tell at a quick glance. aside from that seems like strictly a personal preference to me.

    Between tick and volume, I'm not currently using either but if I were I would probably use volume during RTH and tick during AH.
  4. RedDuke


  5. Aok


    I prefer volume charts, though I did at one time use tick.

    I think of it like a punch.

    Tick chart is like a jab, just one pop predicated on price. If you set your tick value high enough you will capture a lot of jabs which is more telling(painful) than a fewer number. The jabs are never consistent in force or speed per se, so it can be misleading as to the true nature of the guys power in his strong hand(underlying market interest).

    Now with constant vol charts you have a better idea of the "weight" of the punch and couple with the consistent nature of the vol level, you can get a sense of the guys power(bidding/offer urgency) via time.

    So when your cvb chart ramps up/down quickly you know that it is an intentful punch with power behind it. Whereas with tick, and time it could be anything, thin market, market maker bullcrap, news, bad print, or a real move. Plot the 3 charts overnight on one of the emini family and see which one is more readily discernible as to nature of the move.

    Its harder to play games when their size is on the table and cvb makes the "trend" if there is one, more discernable. But whatever works for you, works. Nothing wrong with minute bars. If you are profitable stay with it.

    ProfLogic(among others)has written volumes on this. Good stuff and well worth a re-read

    As far as candles vs ohlc, I like the visual of candle and my feeling is if you understand them you can get an almost emotional sense of the market particpants. However, something about the hash marks of ohlc gives me better picture of price and thats what I trade along with vol and time.
  6. lwlee


    Your description as well as ProfLogic's in the posted thread mirror my sentiments. Glad to know others have chosen the same style.