The Tick Chart is a type of chart that has been popularized by the Forex trading industry. It tracks the price movement overtime on a single axis and is very easy to read for beginners.
Tick charts are a great tool for beginners and experts alike, as they’re easy to read even when scrolling back through the timeline of your trades. They also provide an excellent way for advanced traders to review high volumes in trading during specific time periods that might have otherwise taken hours or days to locate.
If you want to learn how to read and use this chart, then keep reading!
How To Read And Use A Tick Chart
A tick chart is a great place to start if you are new to the world of forex trading. They’re easy and quick to read, which makes it possible for beginners or even experts looking back on their trades in hindsight. For beginners and professionals, following a tick is one of the best tools for trading. All you need to do is hover over any point on the tick chart to see the date and time it occurred, as well as how much volume was traded at that specific point.
There are a few ways in which an expert might use a tick chart for their trading purposes. Let’s say you wanted to know when there was a high volume of trading, and you wanted to know this for a specific time period. In that case, all you would need to do is hover over the bar at the beginning of your desired timeframe (e.g., one hour), and then scroll down until it changes color. This means there was more volume traded than at any other point in time during this particular range.
This is just a simple breakdown though, the steps below will give you a more detailed look into tick charts.
Step One: Understanding The Bars on the Tick Chart
The bars are often called ticks, and they can represent different things. The default is that each tick represents one second in time. For example: if we were looking at a price chart for bitcoin over 30 minutes, then each bar would represent thirty seconds of time passed since the previous bar (a minute). Ticks also can represent a one-minute interval or can show the difference between two prices.
Step Two: Understanding The Colors On Tick Charts
The tick charts are often shaded with different colors that denote the level of volume traded at any given point in time on an exchange. If the tick chart is a specific color, then it means that there was more volume traded than at any other point in time on this particular exchange.
Step Three: The Time Period Window On Tick Charts
There is also a small window on each tick chart that shows you the time period covered by this data. For example, if the price of bitcoin has been tracked from $269 to $408 in thirty minutes, then there will be two bars: one at 269 and another at 408. In order to see how much change happened between these two points in time, you can look at the “Time Period” window and see that it covers a thirty-minute span.
Step Four: Understanding The Lines On Tick Charts
The lines on tick charts are a lot like the lines on graphs. They represent support and resistance levels, as well as trends in price action. If two lines are close together, it means the price is highly volatile and will be difficult to predict. If they’re far apart, then this indicates a stable market (either up or down).
Step Five: Understanding The Tools On Tick Charts
The tools on tick charts can show you how many shares have been traded as well as what the average share price is, which can be helpful for those who want to know more about the market’s stability.
Step Six: What To Do If You Want More Or Less Data On A Tick Chart
If you’d like to see data from a different point in time on your tick chart (e.g., instead of looking at one second of data, you want to see one minute), then simply right-click on the tick chart and select “Zoom In” or “Zoom Out.”
Step Seven: Understanding The Ticks On Tick Charts
The ticks or bars demonstrate a change in price. If the tick is green, this means that prices are going up. If it’s red, then prices are falling, and if there isn’t any color on the bar (i.e., just black), then we’re at a standstill when it comes to movement in price.
Learning how to read and use a tick chart can be an incredibly valuable tool for anyone who trades the markets. Whether you’re new to trading or have been doing it for years, understanding this one simple principle will help you make smarter decisions about your investments going forward. The article has provided seven easy steps that outline what a tick chart is and how it works so feel free to use it as a tool as you continue on your journey of investing!