This is a total noob question asked by a noob. But at the risk of getting slammed by people on this forum, what is exactly a tick chart? I've searched the web, but cannot find a good definition of what a tick chart is. I've read it as defined as the number of transactions or the number of trades. What defines a transaction? What defines a trade? Let's say that I have a 100 tick chart. If there is a trader with 200 shares/contracts that is executed at a certain price, does that mean that execution will create 2 bars on the chart? Or does that count as 1 trade/transaction? Or for argument's sake, if the minimum tick value of some stock/contract is 1 unit. And price goes from 1 to 2 and back to 1. This sequence repeats itself 100 times over the course of 200 shares/contracts. Would this be the completion of a bar on the 100 tick chart. Thanks in advance for helping out a noob.
"Tick" is used in various ways in trading, but the definition relevant here is that "tick" refers to a transaction of a security on an exchange. see http://www.briefing.com/investor/learning-center/analysis/the-tick/ A 100 tick chart is a chart where each bar shows the price range (OHLC, and volume) over 100 transactions.
As defined: Tick The net cumulative tick reading on the NYSE or Nasdaq Composite. This is measured by the number of stocks ticking up minus the number of stocks ticking down at any given moment. It is the least used of the internal indicators but is discussed from time to time. Generally the tick readings are only helpful when they are at extremes such as +1000 on the NYSE to indicate that program trading is ensuing. It's just a chart that shows another form of trend and is used as a confirmation of bredth and advance/decline lines. When the ticks are at +/- 1000 or more, price is either trending upwards without much break or downward without any interruption. When ticks are mixed (or hovering around the 0 line), you're generally in the middle of a choppy market and it's usually better to sit on hands rather than deal with the volatility of indecision from what is likely short term money moving the market. Example: http://i.imgur.com/hVWUGoy.png Tick chart is on the lower left.
Why aren't your charts lined up so Present is vertically aligned? Is it possible that the OP is asking about an OTR chart? If so he could use the rules for signals on an OTR.
I was referring to a tick chart, instead of the NYSE $TICK chart. Baro - I had to read both the tick and tick chart definition to connect the dots. Thanks!