As I understand it a tick is the smallest movement a price makes. So what is the significance of the 89 tick chart. Is it just like a candlestick except that instead of say looking at 1 hours worth of changes we simply take 89 ticks And why 89. I believe also there are other types of tick chart so why would one be used as opposed to another

Thanks

On Tick charts each tick represents a trade(irrespective of size) .....On Volume/Share charts each bar is created when a certain number of contracts have been traded.

89 is popular as it is a Fibonacci Number. Other popular tick based charts are 144, 233, 377, 610.

Some traders prefer tick/volume over time based charts as the bars are formed as a consequence of activity - not time. For Futures I prefer Volume based charts.(Although not the volume shown in the example - I use a calculation for each specific market I'm looking at)

Looking at the 3 examples.... 3 min....233 tick....500 share... What one prefers is a matter of personal choice


For Forex charts... each tick/volume is just a change in price - not an actual trade.



Good Luck and Trade Well
Flow

Attached Thumbnails

     

Thanks

The attached pics show the different results when using the same strategy on the 3 min.....233 tick.....500 share charts over the last couple of days on Crude.


The 3 min has the lowest $ return.....profit factor.... win %... but the highest Ratio of Avg Win/Loss.

The 500 share has the highest $ return....profit factor... win %...but the lowest Ratio of Avg Win/Loss

The 233 tick is in between...



This is just an example (on very limited data) to show how different chart types can give different results over a similar time period.

Although I prefer to use volume charts, in this example it may not actually be the "best" for this system.(Depending on what criteria/calculations etc you look for in a system)



Good Luck and Trade Well.....
Flow

Attached Thumbnails