I find using non-time charts such as volume or tick charts help forget about the doldrums or no volume areas. This goes for overnight price action. Prices are moved by volume not by time. So I see time-based more meaningful in higher time (day or higher) because it a natural separation periods. Although there are beliefs that time influence prices (10:00am, 2pm, etc), but it's more volume moving pricing, not time. People use time as a cue but it's still volume making the difference.
If you ever watch the lunch hour bars in tick charts, you hardly noticed the difference from the open or closing hours except maybe the range is smaller. But those bars is within range of larger bars in opening and closing hours. It shows you shouldn't be trading in that area anyway since it's small range. Just IMHO.
Here's the comparison:
The 2min chart shows a faint double-bottom, hardly see it. But on 200 tick, the double-bottom is more pronounced.
And at the beginning of the shaded gray box, there is movement upward before dropping to 2B area. On 2min chart you can see the smoothed pivots, on 200 ticks, the pivots were more pronounced. This helps me see higher highs/high lows and lower highs/lower lows much better. If you can see the pivots, I easily draw trendlines to mark the trend, on 2 min, it's a bit more difficult (check the red trendlines).
Of course, I welcome disagreements to this argument
11-05-2006, 05:53 AM
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