New article Equivolume Charting Revisited has been published:
The article dwells on the method of constructing charts, at which each bar consists of the equal number of ticks.
The idea of accounting for volumes when constructing a chart was expressed already in 1871 by Richard W., Jr. Arms in his book "Profits in Volume, Equivolume Charting". Bars on charts constructed using his method had different width - the larger the volume is, the wider the bar is.
Fig.1 Example of an Equivolume Chart
Really, technical analysis, especially relating to stock markets,
accounts not only for the price, but also for the volume of trades.
There are numerous indicators and forecast methods based on the analysis
of volumes. So, in addition to them equivolume charts were created.
In conditions of Forex markets where a trader does not possess
information about the real volume of trades, the assert of using
equivolume charts is rather doubtful. Like many other methods of
technical analysis, the analysis of volumes is less effective than for
stock markets several decades ago. Still, this does not in any way
hinder those who try to find regularities that will help to gain stable
profit in this unstable market.
Author: Andrey Khatimlianskii
Nice work indead but I think there's just one problem with this: a tick is a measure
of time, it's not a measure of distance: Let's not confuse ticks with pips: a tick
is simply the next price, a pip is the minimum price change possible (e.g. 1 pip
in EUR/USD is 1/10.000 of 1 euro). A 50 pip tick (like on the monthly non-farm
payrolls anouncement) is perfectly possible (which means that the next price level
compared to the previous one is 50 points/pips higher).
So instead of expressing the candles as a number of ticks (like 20 ticks in this
example), wouldn't it be better to use it as a new sort of timeframe that doesn't
close the bar untill the next one is (e.g.) 20 PIPS lower or higher than the first
price of the bar or the last price of the previous bar?
This is great work, most of MT4 user were looking for ticks charts based, now its ready :)
I have one more question;
1. Let say, after downloading the data from gain server for the first time, then we compile it, and follow your steps, we should be able to get the ticks chart (100 ticks chart) real-time with historical data (from gain server). What will happen if we close MT4 and re-open it back the next day, do we still need to re-download the ticks data from gain server and apply them agian and again?