Tick Charts or Regular Charts?
Someone emailed me today to ask if I thought tick charts offered any advantages over regular charts. Here’s my reply: In this context a tick is a trade execution. So instead of dividing your chart based on time periods, you’re dividing on number of trades. A possible advantage of this method is that you will see a more regular representation of activity during slow and fast periods. To take an extreme example, in a slow moving market with very few trades occurring, you could...
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