Charts without a time component

[MacroInterest2020]

Is it [or would it be] possible to construct charts without time. The markets or markets do not understand time. It is buy or sell, right? Demand and Supply.

If you use point and figure charts or reversal charts wouldn't you capture more of the harmonics of the market? [The market you are trading is like a living organism ( a breathing chest) it your running up stairs it will breather harder and faster than if you are sitting still]

What chart construct would capture this best?

thanks

 

[cantagril]

Is it [or would it be] possible to construct charts without time. The markets or markets do not understand time. It is buy or sell, right? Demand and Supply.

If you use point and figure charts or reversal charts wouldn't you capture more of the harmonics of the market? [The market you are trading is like a living organism ( a breathing chest) it your running up stairs it will breather harder and faster than if you are sitting still]

What chart construct would capture this best?

thanks

Best is a relative term but point and figure is worth investigating. It may suit you, it may not.

DentalFloss started two threads on p&f:

Best Thread - learning to read price action with p/f charts

i thought i would start this thread as a continuation of the thread started on elitetrader by holygrail.an excellent thread and will transfer thoughts to trade2win. if anybody wants to read up on this ,then go to dorseywright.com or better still buy the jeremy duplessis book "the definitive...

www.trade2win.com

Trading with point and figure

Well folks now you have all learnt the p/f methodology...we must move further on and put up some trades. These are going to be charts with POSSIBLE trade setups we are breakout traders...nothing more so..we are trading only the breakout..but we can get caught in traps,but..we will try like hell...

www.trade2win.com

and the HolyGrail thread on ET that DF refers to:

Learning to read Price Action with P&F Charting | Elite Trader

I came to ET about 2 years ago with the hope of picking up enough tidbits to become a day trader when I retire. I am definitely a type A personality,...

www.elitetrader.com

Unfortunately, on T2W, images are not archived for the long term so a lot of the early stuff is text only.

For intro level stuff you can also look at the articles Articles section.

 

[1nvest]

Is it [or would it be] possible to construct charts without time. The markets or markets do not understand time. It is buy or sell, right? Demand and Supply.

If you use point and figure charts or reversal charts wouldn't you capture more of the harmonics of the market? [The market you are trading is like a living organism ( a breathing chest) it your running up stairs it will breather harder and faster than if you are sitting still]

What chart construct would capture this best?

thanks

I wouldn't say the markets do not understand time.
the non-time based charts simply provide a different viewpoint. a different "representation" of the same data. and all of that data is packaged into a time aspect.

the point and figure chart doesn't ignore time, it simply addresses what it considers as "material"
each data point could contain the daily close for example, so it is certainly constructed with time. the only difference is how its viewed, portrayed and where a pullback must be a certain box size (its materiality level).
They each have their value. renko and the 3 bar reversal are equally as useful.

 

[kalott]

Some use tick charts

https://www.prorealtime.com/en/x-tick-charts

 

[Dowser]

Have you heard of Kagi charts? I've been experimenting with them for a while and have found that if you want these non-time based charts to somewhat resemble your more familiar Candlestick or Bar charts then Average True Range (ATR) can help. For example, last week the ATR on my 3 hour Dow chart was around 100-120 pts. I have found that if you divide this figure by 3 and use it to set up the Kagi chart, there is just the right amount of detail, you could call it 'Capturing the harmonics of the market' if you were so inclined. Of course, all this is by eye and you could divide by 3,4,5,6 or whatever, as different markets on different timeframes will have different 'harmonics'. Worth investigating anyway!