The forex tick chart strategy is one of the numerous strategies in the forex market today. What exactly is it, why should anyone even think of using it?
Have you ever wondered why there are so many strategies in the forex market? It is because as a trader, you have to ability to plan your trade the way you want it to go. You can buy an already made strategy from elsewhere, developed by another person, but somewhere along the line, you may feel that something is wrong and needs to be fixed. That is how traders are able to recreate an existing strategy to suit their personal trading needs. Also, some traders may want to start from scratch to create a trading strategy themselves based on some specifications. So, that is why there are a lot of strategies in the forex market today. Back to our topic; forex tick chart strategy.
WHAT IS FOREX TICK CHART STRATEGY?
Seeing as this is a chart type of strategy, it is obvious that it is some form of technical analysis. It is one of the charts that traders use in day trading. Generally, day trading charts are based on price range, volume, tick, or time. So, a forex tick chart strategy is a day trading chart based on tick. The question now is; what is a tick?
A tick is a term used in the financial market to describe changes. Specifically, a tick serves as a measure of the minimum upward or downward movement in the price of security; now you can tell why it is used in day trading, because it shows the slightest change in price movement in either direction. If you are working with a bigger picture only, you may not be so interested in tiny tick moves, but with a smaller more detailed picture, like in day trading, you want to do nothing but take note of all the small changes in price so you can accumulate as much tiny pips as possible.
From the definition of a tick, one can say that a tick chart is a graphical representation of the measure of the minimum and upward movement in the price of a security; and a forex tick chart strategy is a trading plan that is based on the use of the tick chart. Even though the forex tick chart is good for day trading, it is also good for other trading methods too.
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