As most of you know, my programmer, Anthony at PureLogik Trading, specializes in advanced charting types, both on volume analysis and advanced charting types (ie tick charts, renko, etc). This morning, I received an email from Anthony, regarding his new indicator, LogikTickVolumeX.
I don’t use these charts because I don’t think they are as accurate and I know the volume is limited, which actually hides what the “big boys” are doing.
In his email, he also stated that the “big boys are hiding the true transactions” using standard ticks charts. His email states:
“Are all ticks created equal? A tick is a tick, right? Here at PureLogikTrading, we believe the answer to these questions is “No.” If we’re correct, a tick chart does not correctly represent the market, and therefore, the evolution of the tick chart must occur. This evolution is the LogikTickX improved Tick bar, and LogikVolumeX improved Volume bar, which improves the tick chart appearance.
A traditional tick chart is based on a specific number of ticks (trades). A bar will build until the specified number of ticks is reached, with the next tick resulting in a new bar starting.
Since many large quantity traders mask the size of their orders by breaking them up into smaller orders, this method does not represent the “true” tick; their transaction is hidden when using a standard tick chart. It is now many ticks which reach the market that form the true transaction. It is for this reason we believe all ticks are not created equal and that only one tick should represent the one true transaction.
The LogikTickX and LogikVolumeX utilize signal processing and price reconstruction techniques to cut through the noise, reconstructing the true transaction, and thereby minimizing the ability of traders to hide large orders. This allows you to identify and react better to the true market sentiment, giving clearer analysis, signals, and correlation between price and volume development.”
He also did a video on the differences between regular tick charts versus his tick chart indicator with volume analysis. Anthony also shows you how they can hide their transactions behind the “ticks”. His newest indicator reveals this hidden action.