Trading forex with tick charts
A section from our London forex webinar where we considered how tick charts can help in trading reversals in volatile market conditions using our specialist Tickspeedometer for the Ninjatrader platform.
00:11
Introduction to tick charts and market moves
00:11
The speaker prepares to share their screen and confirms the microphone is working. They mention having the Aussie Swiss chart ready but decide to focus on the tick charts, highlighting a notable movement in CAD/EN that relates to a question Tony asked earlier.
00:43
Trading styles: intraday vs slower time frames
00:43
The speaker discusses market volatility and trading time frames, emphasizing that the choice of time frame depends on the trader’s comfort and approach. They mention that some traders focus on very short-term movements, such as scalping for a few ticks multiple times a day, which may or may not suit everyone.
01:13
Importance of slower time frames in analysis
01:13
The speaker discusses the importance of preferred chart timeframes, emphasizing that slower timeframes carry more weight due to the inclusion of time, making them more reliable for analyzing support, resistance, reversals, and trends. They explain that lower timeframes like 1-minute charts hold less significance compared to 5-minute or higher. The example given involves tick charts, which are independent of time and show momentum and speed of price moves. The speaker also mentions using a 15-second timeframe alongside tick charts for additional context and adjusting settings to better fit the trading approach on these markets.
02:43
Tick charts reveal market momentum
02:43
The segment explains the use of three time frames—one, two, and three minutes—along with an equivalent tick chart that captures market momentum. The tick chart advances with each completed candle regardless of the duration, reflecting raw momentum and market speed. A tick speedometer indicates market activity levels through color changes; green and orange signify increased volume and faster market movement, while red indicates sluggish activity.
03:45
Volume injections and price trends
03:45
The segment explains a three-minute chart analysis focusing on volume injections and price activity. It highlights a significant volume spike under a large candle, indicating increased market participation and a blend of volume and price analysis. The discussion transitions to momentum trading using tick activity, noting a reversal opportunity and the development of a trend supported by a trend monitor. The 15-second chart shows a volatility candle trigger, signaling price congestion and market pause. Overall, it emphasizes combining various indicators as pieces of a jigsaw puzzle to understand market behavior, moving from low to average participation levels.
05:13
Market speed, volume, and participation levels
05:13
The speaker discusses market conditions where trading activity fluctuates between slow and more active phases, indicated by color changes in the trading indicators (orange and green). They emphasize that slow trading signals a sluggish market with low participation, while increased volume shifts the indicators back to green. The conversation highlights the importance of price levels, noting that trading remains within a specific range until a breakout above certain price points occurs. Additionally, the speaker addresses common questions about how to respond to a volatility trigger during active trading, advising that if a long position is open when such a trigger appears, it is often best to close the position and secure profits.
06:07
Handling volatility triggers in trading
06:07
The speaker discusses strategies for managing trades during periods of market congestion. They recommend partially or fully closing positions to secure profits rather than waiting through uncertain market conditions. In loss situations, traders must decide whether to hold or exit, considering the increased volatility and potential for either extended congestion or continuation.
07:00
The market shows signs of breaking higher after a congestion phase, supported by volume and strong support levels identified via the accumulation distribution indicator. The speaker explains how repeated testing of these levels strengthens them, likening it to a muscle growing stronger with use, which increases their significance as support or resistance zones.
08:03
The focus shifts to analyzing market sentiment using time-based charts and tools like the Ossie Swiss and Globe Edge. The speaker highlights that reversals occur across all markets, not just Forex, emphasizing the importance of monitoring broader market indicators to understand potential turning points.
08:35
Session crossovers causing market reversals
08:35
The speaker discusses session crossovers in trading, highlighting an example at 8 o’clock London time where a reversal occurs in US indices trading on Globex, unrelated to Forex markets. Despite gloomy market conditions and selling pressure earlier, a clear reversal happens purely due to the transition between major trading sessions, emphasizing that such movements are not driven by fundamental news or politics but by session timing.
09:41
The segment explains the importance of understanding relational market aspects like session crossovers for successful Forex trading, warning that ignorance leads to losses. It mentions other key volatility points such as the London fix, where traders and institutions often adjust positions, causing fake orders and price fixing. The speaker then shifts focus back to the currency strength indicator to analyze current market sentiment.
10:44
The discussion moves to specific currency movements, noting the yen is consistently selling off across various time frames, with the CAD/JPY pair showing strong moves on tick and 15-minute charts. The speaker addresses a question about trading focus, emphasizing the importance of choosing a trading style based on preferred timeframes—from intraday scalping on short intervals to longer-term trading on 30-minute to 4-hour charts—to manage volatility effectively.
By Anna Coulling – creator of volume price analysis
Ready to Master Forex Trading with Volume Price Analysis?
Join The Complete Forex Trading Program by Anna Coulling and unlock professional-level insights. Learn relational strength, spot momentum shifts, and build consistent strategies using VPA. Lifetime access, Quantum indicators, and real-market examples—transform your forex trading today!