Volatility in forex moves the market trading instruments. Volatility itself is determined by the amount of volume of trades placed per time. The trading volume is specifically high when big market makers are placing trades order. Smart traders therefore expect to trade along with the forex market movers. However, using time-based charts gives little information on the number of volumes placed per time. This problem is effectively eradicated using the Tick On Chart Indicator for MT4.

The Foundation

The Tick On Chart Indicator gives traders clues on the condition of the market. This indicator also gives the degree of the movement of the trading instrument – weather fast or slow.

A tick simply means any changes in the price. The Tick On Chart Indicator is thus a predefined number of trades between buyers and sellers. For example, having 500 tick charts means there are 500 trades between buyers and sellers.

It could be a single contract traded 500 times between two different traders. Thus, a single tick in this indicator is considered the same if it is one contract traded.

The diagram below shows the Tick On Chart Indicator on the Indicator window of the chart.

The Tick On Chart Indicator is different from a time-based chart. This indicator is not based on time frame but is based on transaction of trades.

For example, the H1 chart will plot a new candlestick every 60 minutes. This new candle is formed regardless of the number of transactions that have occurred.

The Tick On Chart Indicator, however, is not time-based charts. This indicator will only plot a new tick every ‘n’ bars regardless of the time. Thus, it is the price change in the minimum time interval.

The Tick On Chart Indicator for MT4 uses 500 bars per tick. This means this indicator will print a new tick when 500 transactions take place.

This indicator helps smart traders to know when the market makers are placing their orders. This is because the Tick On Chart Indicator helps identify price spikes easily. The higher the ticks generated, the more transactions are done for the period. When there are more ticks per time, it means big market markers are opening more trades.

This means that traders can see when the market is most active and when it’s not. Thus, sharp trading positions can be opened and closed within minutes.

This indicator is also useful for traders that find the static nature of time irrelevant. These traders give more preference to how quickly the market is moving.

The price action on this indicator gives ample opportunity to make money on the upside. This implies that trading opportunities can be taken with this indicator even in a sideways market.

Furthermore, this indicator helps to reduce a lot of noises from the time-based chart. This is especially very useful during periods of little movement in prices during off-hours.

Other advantages of using the Tick On Chart Indicator for MT4 is that it is non-repainting.

To best maximize this indicator, traders should use other indicators that display the volume of trades. The best indicators that show the volume of trades are MACD and the Volume Indicator.

Since this indicator is not on the MT4 historical chart, this indicator cannot show past ticks. These ticks will start from the time the indicator is installed. These ticks, however, can last as long as the indicator is still installed.

Removing and reinstalling this indicator will also clear the past ticks on the chart.

Conclusion

The Tick On Chart Indicator helps traders to quickly take advantage of the market during a spike in volatility. With this indicator, quick entry and exit buy and sell trades can be made.

To best utilize this indicator, traders are advised to use it with MACD or Volume Indicator.