What is Tick Chart?

Chart for Day Traders can be based on a number of different criteria, based on time criteria, namely, candlestick that opens and closes after a given time period (1 minute, 5 minutes, 15 minutes, 1 hour. etc ...) Strange chart types based on the criteria of volume, price range, and especially the number of transactions (also known as tick charts).

The tick chart will let the Trader observe the price change over a given number of transactions in the market. A 30-tick chart will draw one candle after every 30 trades.

30-tick chart

What are the benefits of tick charting for traders?

Using tick charts and combined with traditional time-based chart formats can enrich your chart analysis and provide a wealth of valuable market information.

One of these additional pieces of information is the correlation between market volume and price developments. Since a tick chart only creates a new candle when there is a sufficient number of transactions available, the tick chart will change to suit each market type and tell you what the market's volatility is at.
For example, in the case of high volatility in the market, a tick chart will form more of a candle than a time-based chart; on the contrary, a tick chart will form fewer candles when there is a small amount of trading.

70-tick chart: notice the difference between a regular chart and a tick chart from 9:00 (London Open)

233-tick chart: observe the difference in 2 sessions in Asia and Europe

While a typical chart type Trader uses only shows one long candle when the market has strong volatility, the tick chart breaks down the big candle into lots of small candles and gives you more information about the direction of the market. . This is especially helpful for the Scalper brothers.

30-tick chart: dividing the big candle on the regular chart into many small candles

The patterns used on the tick chart are also much more conspicuous than other chart types.

What are the disadvantages of a tick chart?

Unfortunately, only a few brokers provide data for you using tick charts. And the data is sometimes different between brokers (due to problems with the source of the data feed). You'll notice a big difference, and that depends on:
  • Different feeds
  • Amount of data from the feed (stability)
  • Internet data connection situation

Alpari 70-tick chart

FXCM 70-tick chart

Tick chart types of trading frameworks?

Your choice of trading framework is unlimited. The most common are 33-tick, 133-tick, 233-tick charts. There are also many Traders that use the tick chart based on Fibonacci numbers such as 13-tick, 21-tick, 34-tick, 89-tick or 144-tick, etc.

Another way that many traders use is to combine the tick charts with regular charts. For example, if you Trade chart M5, you can choose a tick chart format similar to the M5 chart. This way will help you to easily observe changes in market fluctuations and make appropriate trading decisions.