[Understanding the TICK Part 2]

[Soultrader 12]

Just a remake of the original understanding the TICK video using the newer a Camtasia version.

 

Sample uses a 3 minute line on close and candlestick TICK chart. Taking TICK fades when both the line on close and candlestick line up is a higher probability setup than just using the line on close TICK chart.

 

CLICK HERE TO VIDEO

 

Charts created by Tradestation

[notouch 10]

Excellent video Soultrader. Do you think you could get the same results by ignoring the line on close and just focussing on candlesticks? It seems to me that a tick hook is represented in a candlestick chart as a red candle followed by a green candle. You could use traditional candlestick analysis to get better signals e.g. a series of red candles followed by a bullish engulfing candle would be the same as a tick hook but easier to spot and maybe a more powerful indicator. A series of red candles followed by a hammer would have the same interpretation. I've always seen the TICK as just for scalpers but after seeing this video I may look at it again on higher time frames because it may be useful for timing entries on longer term positions. Thanks.

[Soultrader 12]

Interesting point notouch. In terms of TICK fades, candlestick TICK charts may work better. The line on close chart I personally need because of the visual aspect of it. But if you are able to identify a hook on the candlestick chart this should work as well. I do enjoy the combination of a TICK hook and a TICK fade on the candlestick chart. Seems like a double confirmation technique to me.

 

Perhaps you can try a combination of bearish engulfing and a TICK hook on a line on close. Obviously the amount of signals you will get will decrease. I think the most important thing with TICK strategies is that it should be used in combination with price and not as a stand alone entry/exit method.

[dalby 10]

this is one reason NOT to use Tradestation for the TICK charting (i use TS, quotetracker, and investor RT)

 

TS does not offer a line chart, only a line on close chart. thus, you cannot see the exact values for ticks.

 

much better (imo) to chart ticks with a line chart vs. a lineonclose chart, because you get the exact readings (like you would with a a OHLC chart) but can also see the exact movement up and down

[Blu-Ray 10]

this is one reason NOT to use Tradestation for the TICK charting (i use TS, quotetracker, and investor RT)

 

TS does not offer a line chart, only a line on close chart. thus, you cannot see the exact values for ticks.

 

much better (imo) to chart ticks with a line chart vs. a lineonclose chart, because you get the exact readings (like you would with a a OHLC chart) but can also see the exact movement up and down

 

 

dalby

 

Just curious, so what is your line price based on? Could you post a chart?

 

Cheers

 

Blu-Ray

[marti 10]

great video, thank you

[dalby 10]

my "line price"?

 

i'm not sure what u mean

 

TS does not offer (as far as i know) a LINE chart

 

it only offers line on Close.

 

a line chart lets you see the exact tick readings, but in line format.

[Guest cooter]

Can you post an example so we can see what you are trying to describe, dalby?

 

I'm having issues visualizing the difference, since you can plot a 1 tick chart in TS to see the tick by tick price action. Try it.

[dalby 10]

how can u plot a 1 tick chart of the TICKS? there are no "trades" in the tick. i am not sure i grok that.

[Guest cooter]

Well, grok this, dalby:

 

Every time the $TICK (or any symbol) updates, a tick is created in TS. This is stored as tick data.

 

Whether there is Volume ("trades" as you call it) for that tick is a different matter.

 

So, here's a pic of a 1 tick chart, and a 2 tick chart in TS. The 1 tick chart defaults to a line chart, as the screen capture clearly shows.

 

(The resolution may be squished, so you might have to enlarge it to confirm it for yourself if its not clear).

 

 

 

Even though there is NO volume captured for each tick in certain symbols, such as $TICK, the chart clearly shows what you were referring to.

 

Same with a 2 tick chart or greater, except that you can also plot bars and candlesticks as well.

 

 

Hope this makes it clearer.

[dalby 10]

ok.

 

pretty ugly and hard to work with though, since the 1 tick chart will scroll across the screen pretty quickly and still not serve the purpose

 

im a late comer to ts. i use qtracker and investor R/T as well. i can't understand why TS does not have a basic line chart, but it doesn't

 

the line chart is the only way to SEE a true tick hook, and the exact tick levels over time, since the pattern is "hidden" within a candle, and the line on close does not give each discrete value

[Guest cooter]

dalby

 

Just curious, so what is your line price based on? Could you post a chart?

 

Cheers

 

Blu-Ray

 

Blu-Ray,

Keep asking dalby. He'll just run his mouth on and on about the difference. Yet he can't even bother to post a single chart to show us what he really means.

Typical...

[notouch 10]

IB charts have the option for a line chart which is similar to what dalby referred to. It's basically a line on close chart that's updated every one second. One minute line on close charts seem of questionable value to me because the TICK can vary so much within a single minute but the only value you get on the chart is at the close of each minute.

[Guest cooter]

IB charts have the option for a line chart which is similar to what dalby referred to. It's basically a line on close chart that's updated every one second. One minute line on close charts seem of questionable value to me because the TICK can vary so much within a single minute but the only value you get on the chart is at the close of each minute.

 

notouch,

That makes more sense to me. Either you update on each tick, or on a prescribed interval, every second, 6 seconds, 15 seconds or 1 minute or greater.

 

Having a minute line chart that somehow has the granularity to show ALL the tick hooks occuring in that minute bar is what is escaping me. The lowest fixed timed granularity in TS is a minute; you'd probably need a lower fixed time scale to see it all.

[dalby 10]

i've never posted a single chart

 

sorry

 

is it that difficult to understand the difference between a line chart, and a line on close.

 

sorry, if i'm running my mouth

 

if you want to ignore me, feel free

 

it's not that complex a topic. you should be able to understand it. engage brain. disengage rhetoric.

 

hth

[dalby 10]

cooter, is spot on. btw, quotetracker (besides having a line chart) also allows you to draw candles based on a fraction of a minute. there is no discrete minute interval required.

 

i lurv TS, but the lack of a line chart is a drawback

[Blu-Ray 10]

dalby

 

Apologies in advance if I've missed something, but let me get this straight...

 

You say your line chart is not a line on close chart, but after every set interval, eg 1 minute, it has to give an end value of that minute, so what is that price based on?

 

Is it based on a line on close chart but the actual minute at present fluctuates as price of the TICK fluctuates.. if so then that's the same as TS.

 

Hope this makes sense

 

Blu-Ray

[keymoo 10]

dalby,

 

Just answering the questions would help not only the people actively involved in the thread but also lurkers just reading. What is a line chart? If you have a 1min line chart up, how is that different to a 1min line on close? The only difference I can see is the most recent interval is updated more often. But at the end of the interval it needs to print a value. What is that value? The close? An average of OHLC? What?

[dalby 10]

as videos by carter, hubert et al recognize, TS's line on close chart does NOT show every value. for example, if tick spikes up to 1200, the line on close often will not show anywhere near that extreme. the OHLC will (or candle etc.)

 

to confirm this - setup a line on close chart and a OHLC chart for the tick. compare and contrast

 

see? the extremes are caught by the OHLC but NOT the loc chart

 

the line chart (as opposed to lineonclose) does not give a closing value every minute (the line chart NOT the line on close chart). i don;'t know why u are assuming that. i never said it did, and i see no reason why you would assume that. it continually updates, as the tick does - just like the OHLC does (but of course it's a line chart not a OHLC so you can see the movement).

 

that's the difference.

 

if u set up a line chart next to a line on close, you can clearly see the difference. and like i said, the fact that the extremes on the OHLC chart are NOT represented on the lineonclose chart is proof enough.

 

i think a lot of TS users assume (wrongly) that TS line on close chart is the way line charts work. that is false. that is the way line on close charts work.

 

there is an astounding difference

[notouch 10]

dalby is absolutely right about the line charts. I suppose the perfect one would update with every tick but the IB one updates every second. There is no "end of interval" if it's tick-by-tick but if it's every second then obviously it would print the value it has each second. If anyone's that interested I'll post a video tomorrow of a TICK line chart that updates every second. I'm sure you can all appreciate what it look like though - total chaos.

[Guest cooter]

notouch,

Yes, since dalby either can't or won't illustrate what he is referring to with at least a pic, I'd appreciate it if you would aid him in his quest to explain to us what he really means.

thxs

[notouch 10]

I think what dalby's saying is perfectly clear and a pic wouldn't illustrate it but I'll be happy to post a video.

[keymoo 10]

Thanks dalby, so would I be right in saying that a line chart is not time based? Every time a new value comes in it is plotted. Simple as that?

[Guest cooter]

Thanks dalby, so would I be right in saying that a line chart is not time based? Every time a new value comes in it is plotted. Simple as that?

 

If that's case, the pic above (1 tick chart) seems to fit my understanding of what he's getting at.

[notouch 10]

Here a line chart updated every second of the KOSPI futures.

 

OK... so I sent the file to megaupload, now how do I make it appear in my post?