Time based candels V Tick Candles

[Nick1984]

I have been using 3 min candles for the majority of the time but have just switched to Tick candles. I used the 233 tick charts to see what James uses but I also used it in combination with an 89 tick chart to see shorter term moves.

Feels different and its certainly more dynamic than the traditional time based candles.

I find that with the volume delta tool that it works quite well.

What are your experiences and/or preferences between them?

[walterw]

Good topic Nick... my experience on Russell has been based on 110 Tick as I was for many years a John Novak follower... Fibonacci Day trading software - NEXGEN Software Systems (all his free stuff obviously)... so my central timeframe is 110 Tick... from there on I like to breakdown information as I am more of a scalper... to 1/2 55 Tick 1/5 22 Tick... but always mantain the 110 T spirit, obviously tick charts have the advantage of taking into acct price action, time based are nice for big volume picture on 5 min but for timing reasons I would always recomend tick charts... cheers Walter.

[marketpilot]

I primarily trade the ES where I like a 233 Tick chart as well.

I like to see more candles when the action heats up and there are more trades going on. Likewise, when things start to crawl, I feel the Tick chart gives a better view of the price action where a time chart stretches things out too much for me.

I also like to see the over night action. While I would not trade the after hours with that slow of a Tick chart, I do like how the Tick chart condenses the after hours price action. Much easier to look for possible areas of support of resistance. (When there is good over night action)

I'm also starting to lean towards a Volume based chart. Just another way to slice up the Tick data. I'm playing with a 1000 Volume chart in the ES. It is usually faster than the 233 Tick. But it kicks out more candles when the bigger volume players come in to trade. I feel I can see moves sooner in the volume chart than the Tick chart.

Find what makes sense to you, helps you make trades and use that.

Trade Wise, Trade Well
John

[Nick1984]

Thanks for the responses. Another reason I posted this up was the psychological factor specifically boredom. On days where the price doesnt move much of a certain boundary, a time based candle chart is excruciating to watch in my personal oppinion. Nothing worse than see a skinny candle repeatedly.

Last night i found that I was more comfortable with a 233, 55 and 89 tick chart up as the timing of my entry was much more solid than with the time based chart. The 233 helped me see the bigger moves and the 55 and 89 helped me fine tune the entry. I'm pretty sure 55 and 89 are all fib numbers as well.

We'll see how it goes again tonight.

[januson]

Funny you started this thread, I've actually done a lot of studying using tick charts and/ or timebased charts.
I've also experimented with different tick numbers according to the stock price / stock volume. And I've found that some stocks behave very nicely using a 23 tick while other should be traded using 55 ticks etc. I've also traded using 233 sec for entering a trade and 5 tick to exit (I mentioned that in another thread, my writing now should express my newest findings since that)

Anyway the Copenhagen Stock Exchange opens at 09:00 and closes 17:00, the closing auction starts 16:50 and therefore I use a 47 min chart as this gives me the last tradeable candle up to 16:50, it opens 16:03 and closes 16:50 - this is only when I'm looking for a good 'day to day' entry if I believe in a nice tomorrow morning

[Nick1984]

Thanks for that januson. Do you think you could elaborate a bit more on your findings for the way the stock behaves with the different size tick candles. Eg> Why have you found the 233 tick better than a 23, 55 or 89 for entering?

What I've noticed so far when combining a 233 tick for my main chart, an 89, and a 55 and also a 5 minute chart, that the 233 is my main guideline for entering and i use the 55 and 89 to fine tune my entry. The 5 minute is used as an overall picture for the longer term. For example if my 233 and 5 minute is telling me that we might be going down south I wont enter a trade until both the 89 and 55 ticks have fired of 2 and 3 respectively red candles as a confirmation.

[NihabaAshi]

Can somebody post three charts side by side that represents the exact same price action via a Candlestick chart.

* Time Chart
* Tick Chart
* Volume Based Chart

I don't have access to Tick nor Volume Based chart and I'm curious what they all look like preferrably for a price action between 0930am - 10am est or for the price action when a key economic report is released on any particular trading day.

Thanks.

Mark
(a.k.a. NihabaAshi) Japanese Candlestick term

"Volatility Analysis is an open doorway to consistent profits."

[Soultrader]

Hi Mark,

I have posted a 1500v chart, a 233 tick chart, and a 5min YM chart.

[NihabaAshi]

Soultrader,

Thank you for the side by side chart comparison.

Mark