Adding Tick Charts to Your Market Analysis - GG

Email Excerpt

Hi, Toni.

I thought you may be able to help me with the following:

I trade GG and want to use tick charts. I usually trade 5 min Candlesticks. How does one figure out the amount of ticks to convert from 5 min Candlesticks to a tick chart?

thanks, Toni, take care


Response Excerpt

The best way to translate a time frame chart into a tick chart is to make two equal-sized charts, one over the top of the other, and on one of them have your 5 minute time frame and on the other test out different settings for the ticks and see which ones show about the same span of time. Make sure the scaling is the same. For GG, for instance, a 5 minute chart is roughly equal to an 800 tick chart of GG. Keep in mind that it will change slightly from day to day and during different times of the day with increased or decreased volume activity. If you go through a lot of charts a day you can’t do this as easily, but keeping a 200 tick chart up gives you a place to start to toss a symbol into to see what the current activity. The less active a security, the smaller the tick chart is you can use.

All my best,
Toni

http://www.swingtrader.net/ (Online Trading Course)
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