As the US markets come to a close late in the session we take a closer look at some of the non-time based charts and how to use them in your day trading. In particular, in the webinar, we focus on both tick and renko. Both are extremely popular, and for one reason. They reveal momentum in the market. A time-based chart never reveals this, only volatility, since each candle is governed by the metric of time and closes only when that has been met. Non-time based charts however use the metric of the number of tick or points, and once this has been met, the candle or brick closes. This means each is independent of time, and will be governed by a non time metric. A tick candle will, therefore, close after the respective number of ticks set for the chart, and once met, moves on to build the next candle. So whether this has occurred in a millisecond or seconds, time has no impact. So when a market is fast-moving, bricks and candles appear rapidly. When the market is slow-moving, they appear with less momentum. This is the beauty of using a non-time based chart. However, there is a problem, and that’s knowing what to set the chart value for either tick or renko. But at Quantum Trading we have developed two unique indicators which deliver the optimal setting, and more importantly throughout the session. As you can appreciate, this changes constantly and you have to change these settings also. And using this approach then gives you an edge as you trading in harmony with the market. No more guesswork!
In addition, using a non time-based chart with a time chart provides and excellent blend of the two. It allows you to apply volume price analysis whilst having the advantage of trading using a non-time based chart, and for the renko, this also smoothes out the price action, reducing the noise of the market and providing excellent entry triggers also. And helping to keep you in and get you out at the right time.
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