why channel breakout stratey fails with tick chart?

Discussion in 'Strategy Development' started by flyingforget, Aug 13, 2008.

  1. It performs better with minute chart ,what is the reason? Thank you
  2. another chart
  3. what do you think of the volume or tick chart?
    is it more easy to see trend in volume or tick chart than in minute chart?I trade Asia market ,I find it is a little easier to see trend in minute chart.
  4. Lucrum


    Is a 50 tick chart comparable to a one minute chart on the instrument your testing?
  5. Anytime you create a chart based on variables, the outcomes or what will be viewed on those charts will be exaggerated randomness & chaos.

    Tick charts are variable based because each tick has a different embedded value of volume. Someone trading 200 contracts in a single transaction carries as much weight as a single transaction of one contract. That is what causes the exaggerated randomness & chaos (NOISE) on a chart. Minute charts are no better because every bar is a different weight of volume as well.

    In order to see a clear view of price movement on any chart the chart needs to be created using Constant or capped Volume or Share bars. The reason is that each bar has the identical amount of volume attributed to it. When you eliminate the variable aspect of the chart you are watching you eliminate the NOISE viewed on that particular chart.
  6. Yes ,I trade hsi,I don't wether it is proper to compare the 50 tick chart with 1 minute chart.becoz it is index future so tick chart is equal to volume chart.
  7. Not to step on your toes but no tick chart is equal to any volume chart and no tick chart is equal to any minute chart and no minute chart is equal to any volume chart.
  8. I agree.

    The challenge for me, an ES trader, has always been finding the least noisy alternative to both time and tick charts. Constant volume solves only half the issue, because the setting options are limitless.

    I've been experimenting with a 233 tick chart for sharper entries to my 15 and 60 minute charts, but the results are unsatisfactory.

    Can you tell me what a good volume alternative (that shows similar price action is to the 233 or a way for me to experiment and find it myself?
  9. look at the chart ,the volume is constant,am I wrong? plz correct me.
  10. the volume chart of tradestation.

    the volume is not constant ,why?
    #10     Aug 13, 2008