Posted By: Ilan Levy-Mayer Vice President, Cannon Trading Futures Blog
Cannon Futures Weekly Letter Issue # 1073
Day Trading 201: Using Tick/Volume charts and Oscillators for Scalping
- It uses a tick chart rather than a time chart. I like tick charts ( range bar, volume charts, renko) better when day-trading shorter time frames for the simple reason it already includes a big factor in the market, VOLUME. If you are using a 5 minute chart for example, you may get signals simply because time “has passed” and certain indicators you are using adopt certain values. When using tick charts during periods where there are lots of movement, you won’t have to wait until your time frame bar closes to get your signal, volume becomes a bigger more important part of your trading decision.
- The other part for this trading approach is to use overbought/ oversold indicators in an attempt to catch exhuastion in selling or buying and catch the counter trend move. Sometimes that move will be minor, sometimes it will be a trend reversal and at other times just a little pause in a strong trend….no crystal balls here, just another tool to observe and consider in your trading. In the PDF you will see the same indicators, same market, same time frame BUT using different type of charts…..
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Futures Trading Levels
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