Monthly Archives: January 2010

Tick or Range Charts vs Time Based Charts

My preference is to trade using time based charts – 30-minute, 5-minute and 1-minute. Largely it’s just due to personal preference. I gain a greater feel for price action through the time based charts, in particular noting the changes of speed through greater movement in a unit of time. Plus there’s also the fact that I believe more people are watching the time charts than tick charts, so I want to see what they’re seeing (if you have data to prove otherwise, please let me know).

However there are some times when I find it greatly beneficial to see a differing view of price action.

Sometimes when I’m just not feeling the bias well I’ll change the view to gain a different perspective. Remember, it is the same underlying price action; you’re just viewing it differently.

The main time though is when price experiences a sudden explosion in volume and volatility, such as occurs following news events or economic releases. In this case I’ll still monitor the time based charts, but they’ll take a second place to either tick charts and/or range charts, which tend to give me greater insight into the forces within the larger-range time-based charts.

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Pulling the Trigger – This Entry Strategy May Help…

Nothing annoys me more than a good trade which was not entered due to hesitation.

So let me show you a good trade setup which I missed last night and share a little strategy that I SHOULD have used to help me pull the trigger.

I generally don’t like to use the word should, as it’s always easy to see in hindsight, but hesitation at entry is one of my ongoing problems. I’m well aware of it and well aware of what I need to do to manage it. This time, I fell into my old ‘lack of focus’ habit and missed a great opportunity.

The following chart is the British Pound fx currency futures (6B), 1 minute chart, from Jan 5th 2010. Spot forex traders should refer to GBP/USD if you wish to look at it on your own platform.

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