Emini Futures | Trading Emini Tick Charts
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S&P 500 Emini Futures
Emini Charts / Today's Opening Trade -
(ES) 05/24/12
Trading Emini Tick Charts
We've discussed Time Charts, Volume Charts, and Range Charts. In this post we will cover the Tick Chart and how it's unique difference can be beneficial to the Emini Futures Trader.
Tick charts display a certain number of trades before printing a new candle. Unlike the other charts we have looked at which are based on time, volume or range, the tick chart is based simply on the number of trades. It doesn't matter if the trade is for 1 contract or 100, it counts as 1 Tick.
Tick charts are used primarily by day traders and are often based on Fibonacci numbers such as 89, 144, 233 etc. While the Tick Chart can provide detailed information about current trading activity, it can also generate a very high signal to noise ratio. Using larger size Tick Charts can help to filter much of the noise while still keeping you apprised not of volume, but of trading activity.
Tick charts are a visual representation of the time and sales window. It's a modern day method of "reading the tape". Keep in mind that the Tick Chart only displays the number of trades that take place.
Whether you are using a 233 Tick, 377 Tick, or a much large number, remember that you are not seeing the amount of volume that is being traded. Without the volume, you have a limited view of the market. While these charts are again, very popular with daytraders and scalpers, we even teach our Partners how to use a larger one in our Emini Mentoring Course, our favorite chart remains the one that shows us Time, Price, and Volume.
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