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Why Tick Charts instead of Time Based Charts? or other chart types
For entry and intraday structure (spanning 1 to 3 days max), constant volume charts. For anything larger, time-based, as volume is variable and thus hides the true picture of supply and demand which is not measured by volume but by price--a range chart would do equally well here IMO, but I just can't stand the way they look.
In the list of chart types, there are also the delta-volume charts (each bar has the same delta, either positive or negative) introduced (if no mistake) by Market Delta, and now spread on other platforms (including Sierra Chart).
In the way the question is asked, I guess that there will be no rush to give input from traders who do not use "charts" for their day-trading, and rely almost exclusively on one of the following:
- profiles (example on the forum:
i am starting a thread to show that price forecasting is indeed possible once we think out of the box. attached is the price forecasting for S&P500 emini for 21 Nov 2011. I will be recording my forecast for a few markets when possible.
I returned towards time based chart after using range, better renko , volume and tick chart.
But i equally feel , better renko ( or range also ) gives desired patience to wait for breakout and chop when i trade time base chart.
Salut Nicolas
I would appreciate input of any kind as I am very open to suggestions, trials and experiments.
It is just that I listed the most common or what I thought are the most common chart types used for trading intra-day...
Josh, I agree with you; Volume is very important, eventually more than ticks (trades) but I can still visualize volume in a tick chart when I plot the histogram below.
That basically allows me to calculate "contracts per trade" as opposed to "contracts per minute" on a time based chart Am I missing something else by not using volume charts?
I have an understanding that institutions average a high number of contracts per trade and I use that as an indicator of when they jump into/out of the market... But truth is that I've never traded out of tick charts yet, just visualizing them for the past week or so to get a better understanding of their behavior and patterns.
In any case, I will try and plot a volume chart as of today side by side to my tick and time chart of the ES and see for myself
Any particular setups for volume and/or tick charts you suggest on the ES?
I would go with the 100k of bigmike on the volume chart, and the 500T / 1500T / 4500T tick charts suggest by emini-watch for a start.
Successful people will do what unsuccessful people won't or can't do!
from traders who do not use "charts" for their day-trading, and rely almost exclusively on one of the following:
