Why do people use Volume, Range and Tic charts?

Discussion in 'Trading' started by fearless9, Nov 13, 2006.

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  1. Hello NZDSPeCIALISt

    Am I correct to assume you are a fx trader in which case you do not have volume available to you.

    I am an ES boy and it is all about volume plus s&r in my camp.
    I also use the 3 frames you described but they are quite different as they are 3 expanding views of the bid/ask volume.
    Nevertheless, the principal is still the same.

    Did I read somewhere that Reuters and CME are going to produce Fx in 2007?
    If so, will they capture volume?
    regards
    f9
     
    #141     Nov 24, 2006
  2. nkhoi

    nkhoi

    is this the same as the saying trade in the same direction of the higher time frame?
     
    #142     Nov 24, 2006
  3. f9,

    Yes, Reuters & the CME would like to begin offering it in 2007 and yes we will be able to apply volume bars to the end result.

    Bill
     
    #143     Nov 24, 2006
  4. Keep it up and trade in good health.
     
    #144     Nov 24, 2006
  5. Thanks Bill.
    I came into this game through the fx door, but switched to futures to narrow the spreads and appoint a referee, namely the CME.
    However I like Fx and I will be interested to see how the CME handle it
     
    #145     Nov 24, 2006
  6. Almost, but not quite. The trend is sometimes your friend, but sometimes your trend chart is showing a high probability reversal. Momentum charts have not picked that reversal up yet and trend followers go with it (the trend). Then, those who see the reversal formed on the trend chart, wait like a sniper for the reversal momentum signal. By that time trendfollowers are into a trade and most probably are putting stop to breakeven. Then, when momentum/fine tune charts signal reversal - the counter trend traders (who are actually following the 'trend chart' - as oppossed to the 'trend", pounce, and the move is fueled by the stops that trend followers had @ breakeven (who were not following the trend chart - but just the trend). Hope that came out right.

    Re CME/Reuters hookup - it will be an excellent source for fx data once it is up and running as it has the best of both worlds (regulated centralized clearing volume data environment of futs and 24/5 liquidity of spot) The purity of tick/volume data will perhaps be unsurpased to use in trading.
     
    #146     Nov 24, 2006
  7. I can't wait. To me it will like the conclusion to a long journey. The clarity of volume bars overlayed on the huge liquidity of the Fx. I have a few friends that trade 10,000 contract lots now in the Euro for a bank with ease. I will never trade that much but to know that one could trade 500 contracts (US$5000 a pip) makes me giddy. :D
     
    #147     Nov 24, 2006
  8. NZDS, I'm impressed. Well stated!

    I've designated specific levels as to where extreme (Prime) Trend oscillations always occur. By doing this I can see where trends beging their migration process (one Trend migrating to the other). This I will leave up to you to find because this area is different depending on the indicator you use. I use the Ergodic with some custom settings I've developed over the years.
     
    #148     Nov 24, 2006
  9. Proffessor sounds interesting, care to elaborate?

    Until recently I payed less emphasis on what I now realise is an extremely important area of trading: the correct calibration of charts.

    The indicator I use (cci) is especially prone to having a correctly calibrated chart. Similarly, trading usdjpy (and infact all asian instruments), the power of candlestick analysis is the leading indicator - moreso than western instruments. Finally, doing bar counts/fib time studies is another leading indicator (that I have yet to properly apply to date) that is dependant on having an accurate tick chart setting.
     
    #149     Nov 24, 2006
  10. Thom64

    Thom64

    Greetings,

    Thanks again for your input,I used your suggested parameters for todays shortened session.I must say that it made a huge difference in my ability to navigate the session.Hit target within first hour,doubled that by noon.

    I hope to be able to add some positive information to a great thread.Thanks to all here.The comments about desktop layout makes alot of sense,and likely looked over by many,myself included.

    cordially Tom
     
    #150     Nov 24, 2006
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