Tick volume graphic

Discussion in 'Newbie Questions' started by lucacrebbe, May 28, 2018.

  1. lucacrebbe

    lucacrebbe Trader

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    Hello can you help me out with the tick volume?


    I can't really understand what is the difference between a candle graphic and a tick volume graphic


    How can I spot ther price movement when I am using a tick-volume graphic?


    I have red that it is the minimum price movement... well but isn' it the same of a ''normal'' candle graphic?

    The candle chart also shows the minimum price movement at a given level...

    I really can't understand the difference between the two

    can you make a clear example please? So that I could understand in simple words?
     
  2. Enivid

    Enivid Administrator Staff Member

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    The difference is quite significant indeed. The candle chart is the price chart - it shows some information about the price. Consider the following example:
    candle-chart.png
    The latest candle - the bearish one - opened at 1.33313, closed at 1.33295, had the highest price of 1.33317 and the lowest price at 1.33293.

    The tick volume chart shows how many times did the price update during a period. A price update is called 'tick' in trading. The only other thing it tells us about price is whether the respective price chart candle was bearish or bullish - the volume histogram changes color - green for bullish, red for bearish (by default):

    tick-volume.png
    In the example above, we see that the price update 101 times during that period (M1 or 1 minute). Some traders like to get info about trading activity from tick volume - more price updates, the more active trading is.
     
  3. lucacrebbe

    lucacrebbe Trader

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    Thanks Enivid

    I don't understand how the updates in the price movement can be helpful to take the decision to go long or short (along with other factors, obviously I wouldn't take only one indicator to decide if buy or sell)

    For example if the price in that candle has been updated 101 times, well what does it mean?

    Which kind of indicator can it be? A bearish candle with the price updated 101 times in the session, what could this ''suggest'' ?
     
  4. Enivid

    Enivid Administrator Staff Member

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    Some traders use tick volume as a proxy for the real volume. They believe that all (or some) rules that apply to real volume in trading can be applied to tick volume.
     
  5. lucacrebbe

    lucacrebbe Trader

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    thank you, but I don't understand how can they get informations about what to do , if they know that the price in a session has been updated itself 101 times?
     
  6. Enivid

    Enivid Administrator Staff Member

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    As I have said, they use tick volume as a proxy for the real volume. They do not focus on the actual number of price updates, but rather compare it to the previous periods - rising volume, falling volume, etc.
     
  7. lucacrebbe

    lucacrebbe Trader

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    Thank you, could you please make an example (if you want) ?

    I should compare the tick volume chart I am analizying at the moment, with a chart of the past and its past volume to try to spot an hidden behaviour of the market?
     
  8. Enivid

    Enivid Administrator Staff Member

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