In a nutshell, the music of the market is the oscillations in price. These oscillations occur in all time frames. But they look different in different time frames  Just like music the faster it is played the more different it sounds.

IN trading securities, price oscillations are affected by the time interval used in plotting them on a chart. There are several ways to plot price on harts. The most widely used is minute bars. A few traders prefer tick bars – and we belong to that group.

The difference between minute bars and tick bars is important – at least to me. Minute bars display a new bar for each interval of the selected time. Using a five minute bar, produces a bar each five minutes. The time interval per bas is fixed.

Tick bars on the other hand are different – they display a new bar for each number of ticks of the market. Their time interval is variable.

What’s the real difference. The number of bars for a given time frame can be significantly different. For example, if the market suddenly starts trading much faster – and it often does – minute bars will display a bar for each five minutes of activity. If the speed were to pick up tenfold, you would still get a single bar for each five minutes. On the other hand if you are using tick bars – and market trading suddenly increases tenfold – you ten bars in the same amount of time as with minute bars.

Price oscillations are reflective to the changing sentiment of the market. And that is what traders are attempting to measure. The music of the market sets the mood of the market – just like in a movie. The more music you have to analyze – the more likely you will be able to properly determine the true mood of the market.

See the Music of the Market and trade like a pro. I wrote a whole book about it – you can get the E-Book for a fifty percent discount for a limited time at: http://tradingbetweenthelines.com/products/.

The book completely explains how to use my system, shown on the chart below:

USDCAD1182016

 

Leave a Reply

Your email address will not be published. Required fields are marked *

Comments Protected by WP-SpamShield Spam Blocker

See the Music of the Market

The unique trading method that is Trading Between the Lines