Tick Price Charts

📈 What is a Tick Chart?

A Tick chart is a type of chart based on trading volume and a pre-specified number of transactions (incoming ticks), rather than time. By using a tick chart, traders can effectively eliminate the time factor and focus entirely on real price action through executed transactions. For example, a chart that forms a bar every 34 transactions is called a 34-tick chart.

🛠 Tick Chart Features

These are some of the main features of Tick Charts:

(1) Tick charts can correlate price action with market volume.

(2) Tick charts can completely eliminate the time factor.

(3) Tick charts are more volume-based than price-based.

(4) Tick charts form fewer candles during non-active hours and more candles during high-activity hours.

(5) Traders can easily identify strong trends or potential reversals.

(6) Traders can read a tick chart just like a candlestick chart.

(7) Tick charts are ideal for scalping volatile markets.

⚙️ Tick Chart Settings

There is no perfect formula for setting up a tick chart—it depends on the asset being traded, current market conditions, and most importantly, your trading style (e.g., day trader, scalper, etc.). Here are some important points:

■ Scalping Forex traders may use 5-tick, 21-tick, or 70-tick charts. Some believe that the optimal tick setting for EURUSD is 70 ticks.

■ Stock traders often choose tick numbers based on the Fibonacci sequence: 1 | 2 | 3 | 5 | 8 | 13 | 21 | 34 | 55 | 89 | 144 | 233

Typically, stock traders use 89, 144, or 233 ticks—most commonly, 233 ticks.

🔗 Learn about Fibonacci Trading: » TradingFibonacci.com

🎯 The Advantage of Tick Charts in Volatile Markets

A Tick Chart is a widely used financial chart in technical analysis that tracks price changes based on the count of executed trades (transactions). Each new bar or candle is generated once a predetermined number of trades have taken place, making it a chart driven by transaction volume.

During highly volatile conditions, traditional charts may produce long bars with limited informational value. In contrast, a tick chart breaks down price action into smaller candles, making it easier to identify strong trends and potential reversals.

◙ Tick Price Charts

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