Tick Chart Weighted can be a very useful tool for traders who are looking to trade short-term. The indicator creates bars based on the number transactions. This indicator provides more information in periods of high activity than a chart with a timeframe of 1 minute. You can therefore detect more movements, spot suitable reversal indicators and take advantage of more trading opportunities.
The number of transactions that each tick represents can be adjusted. The X-axis of the tick chart does not remain uniform because transactions change over time. After the opening of the market, for example, there’s a lot of volatility and action.
The weighted tick graph price line is calculated after adding the high, low and close, and then dividing by 4. It is different from median and typical candle price. This indicator is best used with an intraday trading strategy.
The indicator can be a little tricky to use. It is simple to understand. The price line is used as a level of resistance and support. The price line is also used as a gauge for determining the decision on a particular price. The indicator gives a signal to trade when the red line (bid line) is bounced off. The indicator is real-time.
Tick Chart Weighted Trading Example
The indicator lines are used to predict price direction. The red line, for example, bounces off of the price line to indicate that the market is about to enter a bearish signal. After the signal, the price plummets by tens or hundreds of pip. Bullish signals are no different. The blue line bounces up and off the price line.
The conclusion of the article is:
The tick chart is a great indicator to detect price movements within short time frames. Weighted formulas provide excellent trading signals when volatility is high. If you know how to use this formula, it can change your results.