[es] Tick Chart and Moving Average

[tobym333 10]

Hey everyone , I have a quick question that I cant seem to find the answer to, does anyone use moving averages on a tick chart ? I typically use a 233 and 377 tick chart... any responses would be appreciated .

Thanks.

[BlueHorseshoe 10]

Hey everyone , I have a quick question that I cant seem to find the answer to, does anyone use moving averages on a tick chart ? I typically use a 233 and 377 tick chart... any responses would be appreciated .

Thanks.

 

An average is an average. It does what it says on the can. If you want to know the average of prices as displayed on your tick chart, then use an average.

 

What's with the 233 tick chart anyway - you haven't been reading that awful Carter book, have you?

 

BlueHorseshoe

[UrmaBlume 10]

Back in the early days of Market Profile, when online futures volume was not available in real time, time at price was used to simulate volume at price.

 

Later ticks were used to simulate volume.

 

Now we have online volume for everything so why use tick charts at all? It all boils down to how much money is being bet on which side of the market as the prime indicator of price vector. A tick chart treats a thousand lot trade with equal weight as a one lot trade when the thousand lot trade is sure to have a bigger impact on price than the 1 lot trade.

 

Time bars print the same number of bars regardless of volume, tick charts can be deceiving because a lot of small trades can look like a lot of volume even when there isn't.

 

As a test put up a time chart of x minute bars. Then put up a tick chart and a volume chart, adjusted so that the charts covers the same time period as the time chart - in most cases the volume chart will be much smoother/tradeable.

 

 

cheers

 

UB

[tobym333 10]

What tick chart would you suggest ? thanks for the input !!

[UrmaBlume 10]

Back in the early days of Market Profile, when online futures volume was not available in real time, time at price was used to simulate volume at price.

 

Later ticks were used to simulate volume.

 

Now we have online volume for everything so why use tick charts at all? It all boils down to how much money is being bet on which side of the market as the prime indicator of price vector. A tick chart treats a thousand lot trade with equal weight as a one lot trade when the thousand lot trade is sure to have a bigger impact on price than the 1 lot trade.

 

Time bars print the same number of bars regardless of volume, tick charts can be deceiving because a lot of small trades can look like a lot of volume even when there isn't.

 

As a test put up a time chart of x minute bars. Then put up a tick chart and a volume chart, adjusted so that the charts covers the same time period as the time chart - in most cases the volume chart will be much smoother/tradeable.

 

 

cheers

 

UB

 

 

 

Switch to Volume charts, they offer a clearer picture of price action as well as money flow/balance of trade.

 

 

UB

[tobym333 10]

I will look into it... which one 1000 bars ?

[BlueHorseshoe 10]

What tick chart would you suggest ? thanks for the input !!

 

Flip a coin. Toss a dice. Whatever you like. Use a 938 tick chart. Or a 265 tick chart. Or whatever.

 

Or listen to Urma Blume and use a volume chart. Or use range bars. Or a renko chart . . .

 

Get the picture yet?

 

THERE ARE NO MAGIC NUMBERS!

 

Regards,

 

BlueHorseshoe

[tobym333 10]

oh , well thank you for your educational insight ! I understand Im a newb and your probably tired of answering the same ole questions over and over. I look forward to asking you another newbie question and waiting anxiously for your response in hopes of learning something new about the markets, rather than asking the homeless guy on the street which probably could have answered it better than " flip a coin "