Tick Volume

[cpatte7372]

Hi,

Is there anyone out there that uses tick volume to form part of their trading decisions? If so, can you please let me know how you do it? Also, can someone please tell me the advantages and disadvantages of using tick volume.

Cheers

Carlton

[theplumber]

Tick charts yield more information on price action vs time template charts. I see better representation of what traders are doing with them, but it all depends on what type of trader you are, a price action or indicator trader. I see too much lag and false signals using most indicator , for example look at the chart and see the bottom yesterday around 13:00 CST. The 5 minute chart shows multiple dead candles but the tick chart below shows traders buying. The more information the better

[cpatte7372]

Plumber,

Thanks for getting back to me. I think what I need is some schooling on how to best make use of the tick chart. Would you happen to know where I can get some decent learning material on how to interpet tick volume?

Cheers

Carlton

[theplumber]

Hmmm, thought someone else would have said something by now. Don't think I've ever seen any books on tick charts or very good ones on tape reading. Basically that's what tick charts are, tape reading in chart form. If you look at the chart below you see how the down draft was shown with 300T chart vs 5 minute chart using ES (also you would have to find a proper tick count for each seperate instrument) . The stop in selling was picked up, as well as the bid/ask volume showed capitulation with the white inside volume at the lows. Even MarketDelta was all screwed up on this downdraft, but the 300T chart was perfect compared to time and MarketDelta's 3 tick reversal. What I'm looking for are patterns to a stop in selling or buying, in other words trends in buying and selling stand out when you've found the right tick count to fit what you trade. Doesn't the bottom right chart look much cleaner than the top right? It all depends on what you style is, a position trader for a day or two, or a scalper looking for .50 to 2 points a trade. Tick charts fit the scalper better than the position trader. One problem is indicators are useless with them, but I find indicators useless anyways so it doesn't bother me. Some are hooked on them and will find it difficult to trade with their favorite indicator.

Someone told me a few years ago about this website and said it's pretty good for learning tape reading skill, I don't know but they are an Esignal partner http://www.daytradingu.com/

[cpatte7372]

Hey plumber,

Haven't had time to fully digest your comments as yet, however I look forwarding to reading what you have to say.

Thanks for getting back to me. I hope others in this forum also find time to add their opinions.

Cheers mate.

Carlton