Ticks candles in OsEngine.
Ticks candles are a tool for visualizing and analyzing market data used in technical analysis of financial markets. Unlike traditional time-based candles, each tick candle is formed not after a fixed time period but after a certain number of trades. This allows traders and analysts to focus on effective activity and price changes rather than time parameters. In this article, we will take a detailed look at what they represent, their history, and how to enable Ticks candles in Os Engine. Also, where to find the source code for building this type of candles and the basic principles of their calculation.
1. History of Tick candles.
The history of tick candles dates back to the development of electronic trading systems and the increase in trading volumes. Early technical analysis systems used only Japanese candlestick charts and line charts, recording price data over time. However, in the high-frequency trading environment and super-active market movements, time ceased to be an adequate and accurate measure, and candle dimensions such as the number of trades in a candle emerged. Tick candles began to be widely used in the 1990s when computers became more powerful, and traders gained access to real-time transaction data.
2. Calculation of this type of candles.
A tick candle is formed based on a fixed number of transactions (ticks). This means that each tick candle reflects a specific number of trades regardless of how much time it took to complete them, and regardless of the volume traded in those transactions. For example, a 100-tick candle will include data on every 100 trades, not after a minute or an hour.
Example of calculating a tick candle:
1. Determination of tick count. You decide that each tick candle will consist of 50 trades.
2. Data collection. The system tracks trades in the market and sums up the price and volume of each new trade.
3. Completion of the tick candle. Once 50 trades are completed, the tick candle closes, recording the opening price, closing price, highest, and lowest price within that interval.
4. Start of a new tick candle. Data collection starts from scratch, and the process repeats.
3. How to trade with them. Options.
Today, we will look at two situations in one trading session.
1. Huge volumes within one candle.
This indicates the activity of a very large participant opening a position in a particular direction, conducting phenomenal volumes in one or several transactions:
Thus, anomalous volume deviations for a certain number of trades can be identified and traded accordingly. In this case, a very large participant started throwing huge orders into the market, clearly anticipating a rapid rise. Which indeed happened...
2. High activity (many closed candles) at low volumes.
This indicates extraordinary activity from participants with micro accounts.
In this case, we see a huge number of trades closing five candles, with abnormally small volumes. It can be concluded that people with small deposits trading Sberbank shares experienced a panic attack. Scalpers and housewives seemed to believe that there would be a significant price rollback, and mass selling started on many accounts, but with micro volumes. The market did not roll back because the "whales" (other market participants with large deposits) did not believe in the rollback.
4. How to enable the Ticks candle type in Os Engine.
Open the main menu in Os Engine and go to "Bot Station Light".
Connect to the connector:
Then create a trading robot, in this case, it will be Bollinger Revers.
Now go to the menu to connect the data stream to the robot:
Choose any instrument from the list:
1. Choose a connection.
2. Choose a stock.
3. Choose the "Tick" candle type.
4. Set the number of trades inside the candle, after completing which the candle will close.
5. Click "Accept".
After the settings, you will see a chart with "Tick candles":
5. Where to find the source code for Tick candles in OsEngine.
You can find the code for tick candles open-sourced on the GitHub platform.
After downloading the OsEngine project to your computer, you can find the source code here:
Wishing you success with your algorithms!