Tick chart for ES looks different than YM

[The Bear]

Guys I'm looking at ES for the first time ever last night, and when I look at a 100 tick chart for ES in candlestick form, why does it look so square like and choppy compared to the same setup for 100 tick YM?

Is there a way I can make the ES look like the YM chart setup?

[mcichocki_]

	Quote:	The Bear
	Guys I'm looking at ES for the first time ever last night, and when I look at a 100 tick chart for ES in candlestick form, why does it look so square like and choppy compared to the same setup for 100 tick YM? Is there a way I can make the ES look like the YM chart setup?

A tick is a tick, keep in mind the ES has many more participants and bigger money going in so 100 ticks will be used up very quickly. Open up to a greater number or ticks and you'll see the range open up.

[brownsfan019]

Bear,
When I compare volume based charts, same premise as the tick charts, you have to keep your ratios in tact to get somewhat similar results.

In other words, if you like a 100 tick chart on the YM and let's say average volume is 100k per day (easy to keep the math simple but you get the idea) and the ES ave volume is 1mill.

So, 100 tick on YM = .1% ratio

.1% x 1mill = 1000 tick chart

If my math is correct here, that's saying a 1000 tick chart on the ES is the equivalent to a 100 tick chart on the YM in terms of attempting to keep the ratios the same on both charts. A way to 'even it out' while looking at different markets.

This idea holds true on volume based charts, but I don't trade tick charts so maybe it may not work as well. It might give you an idea of where to start and you can adjust your settings from there. 1000 ticks may be a lot, I don't know, but you can see that your setting will probably have to be much higher than 100 to mimic your YM setting.

[The Bear]

	Quote:	brownsfan019
	Bear, When I compare volume based charts, same premise as the tick charts, you have to keep your ratios in tact to get somewhat similar results. In other words, if you like a 100 tick chart on the YM and let's say average volume is 100k per day (easy to keep the math simple but you get the idea) and the ES ave volume is 1mill. So, 100 tick on YM = .1% ratio .1% x 1mill = 1000 tick chart If my math is correct here, that's saying a 1000 tick chart on the ES is the equivalent to a 100 tick chart on the YM in terms of attempting to keep the ratios the same on both charts. A way to 'even it out' while looking at different markets. This idea holds true on volume based charts, but I don't trade tick charts so maybe it may not work as well. It might give you an idea of where to start and you can adjust your settings from there. 1000 ticks may be a lot, I don't know, but you can see that your setting will probably have to be much higher than 100 to mimic your YM setting.

Thanks bros. Your posts help.

I've been fiddling around and I'll keep you posted on my results. I tried the 1000 tick chart, but the range of the day from left to right was very narrow, meaning the whole days data fit on my one monitor. Do you think another way to do it is just put the YM chart up on the right monitor, then the ES on the left, then just adjust the ES by plugging in values, to visually make them match? Would this be a valid way to keep it somewhat similar in action?

[mcichocki_]

Not a bad idea...pull them up side by side and just tinker till you get it where you can spot the same patterns.

The issue may be that they really move in close proximity but the volume/ticks are quite different. I normally use a 1 or 5 minute chart and other than the larger volume the patterns and flow look about the same so maybe a tick chart on ES won't work well?

[brownsfan019]

Bear,
I would just play with it and see. For volume based charts, this is an easy calculation as illustrated above. I do not use tick charts, so hard to say what is best here.

In terms of keeping things similar and smooth, have you considered volume based charts? Just an idea.

[The Bear]

	Quote:	mcichocki_
	Not a bad idea...pull them up side by side and just tinker till you get it where you can spot the same patterns. The issue may be that they really move in close proximity but the volume/ticks are quite different. I normally use a 1 or 5 minute chart and other than the larger volume the patterns and flow look about the same so maybe a tick chart on ES won't work well?

I sometimes use a 2-min chart in the past - and I when I checked the ES 2-min it looks very close to the YM 2-min.

[The Bear]

	Quote:	brownsfan019
	Bear, I would just play with it and see. For volume based charts, this is an easy calculation as illustrated above. I do not use tick charts, so hard to say what is best here. In terms of keeping things similar and smooth, have you considered volume based charts? Just an idea.

Interesting - i'll take a look at your posts. Ive actually never heard of volume based charts.

[brownsfan019]

Just read thru the thread and if you have any questions, feel free to post them in that thread.

[mcichocki_]

	Quote:	The Bear
	I sometimes use a 2-min chart in the past - and I when I checked the ES 2-min it looks very close to the YM 2-min.

If you want a similar visual I'd run minute based charts and not tick or volume charts. JMHO.
Tick and volume charts will differ from the ES to the YM just based on the volume difference alone. Add to that the fact that the YM has really wacky movements sometimes since there are more noob's trading it on emotions. The candles tend to close almost identical to the ES but watch them while forming the candle and they often are very different till the close of that time period. Not to say there isn't noob's trading the ES or pro's playing the YM but the pro money on the ES greatly outweighs the lil guys on the ES.

I say pick a time frame for your given style and trading instrument and don't deviate. You will grow familiar with what the volume bars look like for that instrument and understand volume that is abnormal easier.