TICK Chart IMO

Maybe we already know about Tick Chart. Find out more at http://www.trade-ideas.com/Glossary/Tick_Chart.html.

Now I would like to show th advantages about Tick Chart especially with Price Action Setup.
1. Stop Loss Is Tight.
Tick Chart worked faster when they are lot of trade rush in. For Breakout Trader, the more volume enter at S/R the more valid the break. But it is also important to enter 1 Tick just below the breakout candle. It's usually narrow SL so it's provide low risk entry. Why? Let's assume ES S/R broke above 1200 with fast build candle. If it's fake breakout, usually it's also dropped fast. The Stop at tick candle chart secured you from the fake break. While Time based chart sometimes make a big long bar so give more loss if stopped out.
2. Fast when busy, Slow when quiet. The most important things about breakout S/R is participant. So the faster Tick Bar Broke S/R the better. My Setup consists multiple S/R of the day so it's important using the Tick Chart.
3. Forming Setup Faster when more trade entered. My Setup based on candle formation, so with 5min or 1min candle the setup created all the same frame. But with Tick Chart the faster the setup formed, then the most likely it's a valid setup since my setup are breakthrough setup.

Some disadvantages about Tick Chart is it need more processing. In my computer the chart sometimes hang a bit and it's quite frustating. But the problem can be solved with better internet connection or lower the internet workload.

Hope this article can help your trade.