Tick charts update

For few years I’ve been using a 4500, 1500 and 500 ticks triple time frame configuration, but recently the market changed. Higher ranges and more average ticks per day are occuring since the beginning of 2018 and specially after the bear action at the beginning of February. Those time frames needed adjustment and now I’m using a 6765, 4181 and 1597 ticks triple time frame.

20180326_01

This configuration follows the Fibonacci sequence, where each number is the sum if its immediate two previous numbers:

0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, 610, 987, 1597, 2584, 4181, 6765, 10946

ThinkOrSwim has the limitation of maximum 10000 ticks per trading day, so this configuration shall accomodate current and future action.

A multi-time frame configuration is used from higher to lower time frame. The highest time frame shows the market direction and big aggregated action. Medium time frame, the main time frame, confirms higher time frame observations and can trigger the call to action. Only after the call to action from the medium term time frame we will use the lowest time frame, just to decide a good entry/exit point.

The correct use of a multi-time frame configuration is key to your trading success, on the contrary, if you focus your energy in the lowest time frame you will end up with multiple false signals and their associated loses.

Note: In the attached screnshot, which corresponds to the market action for 2018-03-26, there are multiple levels rendered with short dashed lines. This is a new indicator that I’m developing/testing. Soon I will give you an update about it.

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