Why do people use Volume, Range and Tic charts?

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

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  1. Germs/lady,

    think very carefully about the reasoning of the odd tics, etc. .

    Generally it can be shown that the promoters of such "unusual" ways of looking at the market are marketers. It's their angle, their bait--- can it work---sure, just be aware of the whys, and it isn't what you have been told.

    there is no intrinsic benefit despite what the people who make money off of such things lead you to believe.

    surf
     
    #681     Oct 11, 2007
  2. Good point I agree...

    The method I use can work on any chart settings, and that was important to me. I can trade off minute, tick, volume, pc, or range bar charts and still have excellent results...my system is NOT dependant on a specific chart setting to work.
     
    #682     Oct 11, 2007

  3. thanks.

    exactly, it really has nothing to do with it. its appeal is it appears to be a magic bullet to noobs and others who don't think things all the way through.

    surf
     
    #683     Oct 11, 2007
  4. Well...just like girls though, there are some settings that I prefer!


    LOL! :D
     
    #684     Oct 11, 2007
  5. Why don't you use volume charts when trading Spy? What tick do you use for the SPY?
     
    #685     Oct 11, 2007
  6. I found the 144 and 233 that I use for trading the futures worked just fine for the SPY, so no need to make any changes.
     
    #686     Oct 11, 2007
  7. One should never utilize what they can not verify and confirm on their own. Someone simply telling them that something works is never justification to blindly follow an idea like sheep. In the same way one doesn't take as gospel bias comments. Every good trader knows that it takes screen time to verify any idea and that the verification process is crucial to one's success.
     
    #687     Oct 12, 2007
  8. RedDuke

    RedDuke

    Hi Surf,

    Disagree, volume charts are no magic bullet, it is just for certain type of trading they work the best. I trade momentum, and volume charts capture it best to anything else I have used and studied. I trade very short term (minutes) and the clarify I get with volume bars is nothing short of amazing.
    Regards,
    redduke
     
    #688     Oct 12, 2007
  9. Just a comment or two.

    "Back in the day" price/volume charts were of more value, just like things such as "short interest" and "Specialist longs or shorts" - but, with the advent of so many derivatives, and huge percentage of trades that are "program trades" (especially in the indices like SPY), what we see as "volume" is quite often just an arbitrage trade vs. options or baskets (and other indices). In equities, I teach my people to watch the volume, almost tick by tick, to see levels of various liquidity, but at the same time, I try very hard to make them understand that because of these derivative trades, this method doesn't always reflect a trending direction, just a basic arbitrage play.

    FWIW,

    Don
     
    #689     Oct 12, 2007

  10. No, this is not correct. Objective methods are tested and proven via objective means--- not in a subjective manner such as "screen time". It doesn't take "screen time" to verify an idea, it takes proper testing. To say otherwise simply lends credence to very subjective trading methods promoted under the guise of objectivity---with objective testing dismissed.

    surf
     
    #690     Oct 12, 2007
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