Jaydee
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I was thinking the other day about how often I switch time periods relative to the activity of the market. For example, on a sleepy market day (unlike today) I may be looking at 30 - 60 minute candle chart. Whereas, on a day like today, I may focus on 1 - 5 minute candle charts. Really, I figured, it depends on the market activity - i.e. the volume.
Based on this, I thought it may be better to use charts where the candles represent volume rather than time. So, a single candle may represent 50,000 contracts (or whatever) rather than an amount of time like 5 minutes. Sure enough, such charts do exist as I found in this article on the net:
Improve Your Trading with Tick and Volume Based Charts
My questions are:
Has anybody used such charting before?
Did you find they worked better or were clearer?
Does it solve the switching issue I mentioned above or are you constantly having to switch the volumes of the candles instead of the time?
Who provides these types of charts and is there anywhere that you know of where I can find more information about them?
Thanks
JD
Based on this, I thought it may be better to use charts where the candles represent volume rather than time. So, a single candle may represent 50,000 contracts (or whatever) rather than an amount of time like 5 minutes. Sure enough, such charts do exist as I found in this article on the net:
Improve Your Trading with Tick and Volume Based Charts
My questions are:
Has anybody used such charting before?
Did you find they worked better or were clearer?
Does it solve the switching issue I mentioned above or are you constantly having to switch the volumes of the candles instead of the time?
Who provides these types of charts and is there anywhere that you know of where I can find more information about them?
Thanks
JD