What are the advantages of tick charts ?

Discussion in 'Technical Analysis' started by scott55tt, Dec 5, 2005.

  1. From technical analysis point of view, are there any advantages of tick charts rather than minute charts ?

  2. nitro


    Time element is removed.

  3. Cheese


    Go from tick to volume charts.
    Volume charts will early warn minute charts if you use an indicator. Volume, tick and range charts all remove noise.

    I specially designed a stochastic for a volume and range chart on YM & INDU .. which I don't use because it is not needed for a fully completed predictive trading model.

    The indicator on the volume chart early warns the same indicator on range charts for YM/INDU. You really do need to put the work into your stochastic numbers and into you range, tick and volume sizes. Did acres of work on this but, bottom line, players on indicators can discover a worthwhile improvement.
  4. duard


    Not to be argumentative but I think this statement is only partially true. Time charts do show some things that volume charts do not show you. For instance one of my early problems was being right but not allowing the trade to develop which takes time and does relate to volume but not entirely. Many traders trade based on a 15 minute and hourly basis so by using volume alone you'd not always see the "action." Just my humble observation.

  5. None for me; pace is key for the way I see things and that is what you lose with tick/vol charts.
  6. Don't get carried away guys.
    These phantasies only exist in the eyes and heads of the spectator.

    What you are talking about are one and the same thing: a time series. What you make of it is your private business.

    The way to squeeze money out of it? The ones who know won't tell you. The ones who don't know always talk loudly. I suspect that there are many ways to go about it, each requiring very astute observation.

  7. I asked this question from point of view of whether it will help someone using Oscillators like Stochastics, MACD, RSI etc.

    Cheese when you say indicators, you mean oscillators right ?

    If so can you be little more specific as to how & can you please post a chart or two explaing this ?

    Thanks Much
  8. duard


  9. duard


    Yes, I suppose it relates to the organization of the presented data.

  10. Cheese


    Yes, absolutely, organization of data .. key for a trading model.

    Incidentally I'm not against minute charts.

    I have an affection for the work I did on MACD and Stochastics across minute, tick, volume and range charts YM/INDU and the valuable underpinning they can concurrently provide for chart based reading of the market.

    However I don't use a chart based model.

    As in any form of money making, never do what you happen to like doing, but only do that which produces the maximum/optimum results by the most effective means.
    #10     Dec 5, 2005