[daedalus]

Tick Chart Differences/Benefits:

A tick chart is a chart that builds candles on a set amount of "ticks" rather than a time chart that builds candles based off a set amount of time. A tick is an order that goes into the market. So a 233 tick chart opens and closes a candle every 233 orders.

The good:
- Added clarity in swings.
- MA Values/Biases are influenced by actual volatility, rather than some period of time.

The bad:
- Not all chart providers (most free at least) don't provide them.
- Can't predict close b/c its based off market volatility rather than, "oh that candle closes at 10:50, i'll be at the screens for it."

The first attachment should illustrate the difference between how a 10minute and a 233tick will vary. Notice how clean the swings are on the tick chart, and note how the same swing on the time chart is drawn out and distorted. Clarity in grid trading just makes life easier. Tick chart is on the right, time chart on the left.

The second attachment should just illustrate again the clarity if I were considering buying this swing, look at the chopped clutter that could fake you out on the time chart. The tick chart on the other hand doesn't display that shakeout. Again, tick chart is on the right, time chart on the left.

Obviously, you can use either or. Price action remains the same. It is just my personal preference to favor the tick charts for the above reasons. Forex has a lot of consolidative chop, and the tick charts do wonders to clear up the mess time charts can make. Over the same period of slop, a time chart might print 10 candles, because 100 minutes has passed. In contrast the tick chart will have printed two candles, telling you that nothing has happened. It keeps you out of crap more often than not.

Its my trading methodology that its more important to stay out of the losing trades, rather than get in the winning trades. More should be added as I think of things to add, or if you guys have questions.

Third Attachment: One trade that i'm holding in as we speak, long the EURUSD. Explanation of setup and entry on the image.

My attachments apparently were too big and have been scaled down to fit... i think the first two you can still tell the difference. I re-uploaded the last so you could make out the trade setup.

Cheers!