The advantage of making decisions on bar close serves a few purposes. First, by restricting decisions to a bar\u2019s close, a trader is able to review historical charts for similar situations and patterns. Without this simple reference, the myriad of variations within price movement becomes exhaustive and thus potentially significantly extending the amount of time and experience needed to evaluate the current market\u2019s movements with any certainty (note that periods of clarity may only happen for a few occasions during a period but recognize that the clarity helps to form your edge).<\/p>\n\n\n\n
Time Charts vs Tick Charts<\/strong><\/p>\n\n\n\n Understanding that a trader\u2019s action decision comes at the completion of a current forming bar, let us explore how momentum affects bar pattern formation across a variety of charts, and how tick charts may offer an advantage.<\/p>\n\n\n\n With time charts, bars complete at the end of a time interval: 1m, 2m, 5m, 15m, 30m, 1 hour, 4 hour, 1 day, 1 week etc. These are commonly used intervals. The benefit of using time charts is that intervals occur with periodic regularity. Miss a trade and you know when the next decision interval will occur, and this can potentially reduce stress in the decision making process.<\/p>\n\n\n\n Compare this with tick charts. In these graphical views, the bar measurement is the number of trades between a buyer and seller, an event where each operator believes they have an edge. Without a trade, bars do not continue to open, form or complete.<\/p>\n\n\n\n Recall that Price Action bases decisions on a few key elements: support, resistance, and momentum. Note, from the definition of the bars, tick charts more closely measure the effects of price momentum versus time charts. As tick charts more closely indicate price trading momentum, the quality of the close of a bar may infer potential continued momentum into the next bar. Pairing bar close decisions and using tick charts might then produce a small advantage. Note, with time charts if trading momentum happens through the ending of a time interval, similar aspects may be expected, but since momentum isn\u2019t defined by time length, fewer good bars may occur in a time chart. Simplifying trading decisions reduces stress, so using a singular chart is often best. Changing time intervals to determine good entry bars may not be as effective as using a singular tick chart.<\/p>\n\n\n\n Exercise.<\/strong><\/p>\n\n\n\n The easiest time to observe momentum effects is reviewing price action during a trend. Review the following 4 charts. Note the quality of the entry bars in the PATS method. Then review the time based charts of 5, 3, and 1 minutes. When do good trades happen across the time boundaries? With lower<\/p>\n\n\n\n resolution time charts, they occur more frequently, but not necessarily during good places in pattern context (a future article will discuss). Also, there is less time allowed for good trade decisions. It is very possible to trade with time charts and at a variety of resolutions. However, using tick charts may improve trader probabilities by presenting good signal bars when price momentum shifts towards their benefit. The trade-off is that an individual must be sharp and \u201cpresent in attention\u201d throughout the trading period since the bars do not complete with absolute regularity.<\/p>\n\n\n\n Big Swiss<\/p>\n\n\n\n <\/p>\n","protected":false},"excerpt":{"rendered":" This is another guest article from Big Swiss. Enjoy! Using Bar Close For Decisions The advantage of making decisions on bar close serves a few purposes. First, by restricting decisions to a bar\u2019s close, a trader is able to review historical charts for similar situations and patterns. Without this simple reference, the myriad of variations […]<\/p>\n","protected":false},"author":1,"featured_media":50178,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"pmpro_default_level":"","site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[83,1],"tags":[],"class_list":["post-50177","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-chart-bar-type-information","category-all-articles-related-to-price-action-trading","pmpro-has-access"],"rttpg_featured_image_url":{"full":["https:\/\/priceactiontradingsystem.com\/wp-content\/uploads\/2020\/06\/BS1.jpg",1611,952,false],"landscape":["https:\/\/priceactiontradingsystem.com\/wp-content\/uploads\/2020\/06\/BS1.jpg",1611,952,false],"portraits":["https:\/\/priceactiontradingsystem.com\/wp-content\/uploads\/2020\/06\/BS1.jpg",1611,952,false],"thumbnail":["https:\/\/priceactiontradingsystem.com\/wp-content\/uploads\/2020\/06\/BS1-150x150.jpg",150,150,true],"medium":["https:\/\/priceactiontradingsystem.com\/wp-content\/uploads\/2020\/06\/BS1-300x177.jpg",300,177,true],"large":["https:\/\/priceactiontradingsystem.com\/wp-content\/uploads\/2020\/06\/BS1-1024x605.jpg",1024,605,true],"1536x1536":["https:\/\/priceactiontradingsystem.com\/wp-content\/uploads\/2020\/06\/BS1-1536x908.jpg",1536,908,true],"2048x2048":["https:\/\/priceactiontradingsystem.com\/wp-content\/uploads\/2020\/06\/BS1.jpg",1611,952,false],"rt_custom":["https:\/\/priceactiontradingsystem.com\/wp-content\/uploads\/2020\/06\/BS1.jpg",1611,952,false]},"rttpg_author":{"display_name":"Mack","author_link":"https:\/\/priceactiontradingsystem.com\/author\/mack\/"},"rttpg_comment":7,"rttpg_category":"Chart - Bar Type Information<\/a> Non Member Articles (Free)<\/a>","rttpg_excerpt":"This is another guest article from Big Swiss. Enjoy! Using Bar Close For Decisions The advantage of making decisions on bar close serves a few purposes. First, by restricting decisions to a bar\u2019s close, a trader is able to review historical charts for similar situations and patterns. Without this simple reference, the myriad of variations…","_links":{"self":[{"href":"https:\/\/priceactiontradingsystem.com\/wp-json\/wp\/v2\/posts\/50177","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/priceactiontradingsystem.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/priceactiontradingsystem.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/priceactiontradingsystem.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/priceactiontradingsystem.com\/wp-json\/wp\/v2\/comments?post=50177"}],"version-history":[{"count":1,"href":"https:\/\/priceactiontradingsystem.com\/wp-json\/wp\/v2\/posts\/50177\/revisions"}],"predecessor-version":[{"id":101370,"href":"https:\/\/priceactiontradingsystem.com\/wp-json\/wp\/v2\/posts\/50177\/revisions\/101370"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/priceactiontradingsystem.com\/wp-json\/wp\/v2\/media\/50178"}],"wp:attachment":[{"href":"https:\/\/priceactiontradingsystem.com\/wp-json\/wp\/v2\/media?parent=50177"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/priceactiontradingsystem.com\/wp-json\/wp\/v2\/categories?post=50177"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/priceactiontradingsystem.com\/wp-json\/wp\/v2\/tags?post=50177"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"BS1](\"https:\/\/forestgreen-chicken-354304.hostingersite.comwp-content\/uploads\/2020\/06\/BS1-1024x605.jpg\" "\\"The")
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