No registration required! (Why?)

eSignal charts in Trading 201

by email
I thought I had the tick--volume thing figured out, but now you have thrown me a curve. In your sideways Trade(tick), Time, Volume chart you show during the lunch hour period that ticks exceed volume. How can this be ? A volume of one is one contract whereas a tick of one could be 5 or 10 or 100 contracts which would be a volume of 5 or 10 or 100. Certainly greater volume than ticks.

Would you please clarify.

From me
You are correct, ticks cannot exceed volume. Can you send me an image of a chart that shows more ticks than volume. I’m not sure what you’re looking at.

The chart (graph) I am referring to is in e-Signal's Trading 201 newsletter under The Basics of Technical Indicators 1.

The article by you is titled Chart Types and How They Relate to Each Other. About two-thirds of the way down you have a Trade (tick) , Time, Volume chart turned on it's side. In the paragraph after the chart you comment that mainly at lunchtime the time was high, but more importantly, the trade (tick) percentage was higher than the volume at each price level. This comment is the one I am confused about.
The answer: The chart that you are talking about on that page has percentage based bars. This means that X% of the ticks (trades) taken are at that price. Not the absolute number of ticks.

So, at a particular price, there could have been 4,000 ticks (say) which was 10% of the day's ticks (say) and the volume at that price was 20,000 contracts (say) which represented 5% of the day's volume (say). So here we have the % of ticks being more at that price than the % of contracts.

Hopefully this explains it.