How to Read a Tick Chart for Futures Trading

In futures trading, timing is everything. Whether you’re scalping the Micro E-mini S&P 500 or reacting to CPI numbers, you need a chart that reflects what’s really happening, not just the passing of time. That’s where tick charts come in.

Unlike traditional time-based charts, tick charts show market activity by plotting a new bar every time a set number of trades occur. This gives you a more dynamic view of momentum, volatility, and price action.

In this guide, we’ll break down how tick charts work, how to read them, why they matter for active futures traders, and how to access them on platforms supported by MetroTrade.

Key Takeaways

• Tick charts show market activity more accurately than time-based charts because they plot a new bar after a set number of trades instead of fixed time intervals.

• Traders use tick charts to identify momentum, speed, and short-term setups that are often hidden on traditional intraday charts.

• The ideal tick size depends on your strategy and the product you’re trading, with lower tick counts offering more detail for scalpers and higher counts offering smoother trends for day traders.

• You can access tick charts through MetroTrade’s supported third-party platforms like Sierra Chart, MotiveWave, CQG, and others using Rithmic or CQG data feeds.

What Is a Tick Chart?

A tick chart is a type of intraday trading chart where a new candlestick is created every time a certain number of trades (or “ticks”) take place. The more trades that occur, the more frequently new bars are plotted.

For example:

• On a 200-tick chart, a new bar is formed after every 200 trades.
• On a 1000-tick chart, each bar takes 1000 trades to complete.

Because tick charts are volume-sensitive, they automatically adapt to market speed. During high activity, bars form quickly. In slow markets, it may take longer to build a single bar.

This responsiveness gives traders a more accurate sense of market rhythm and momentum, which can be masked on time-based charts.

Tick Charts vs Time-Based Charts

Most charting platforms offer standard time-based charts like 1-minute, 5-minute, 15-minute, hourly, and so on. These are easy to understand: a new bar forms every X minutes, no matter how much or how little market activity occurs.

Tick charts are different. Here’s how they compare:

Why this matters:
If you rely on timing fast moves such as breakouts, news-driven volatility, or order flow spikes, a time-based chart may lag. A tick chart keeps pace with the market, giving you more precise entry and exit signals.

How to Read a Tick Chart

A tick chart is made up of candles (or bars), each representing a fixed number of trades. Everything else — price highs and lows, wicks, opens, and closes — works the same way as a standard candlestick chart.

Here’s how to interpret a tick chart:

• Speed of bar formation:
• Fast-forming bars = high trading activity = possible momentum
• Slow-forming bars = reduced activity or consolidation
• Candle patterns:
• Patterns like dojis, engulfing candles, inside bars, or hammers are more meaningful because they reflect actual trading flow, not just the passage of time.
• Microstructure details:
• With smaller tick settings, you can observe pullbacks, minor reversals, and volatility in greater detail.
• Volume support:
• Most tick charts also support volume overlays or volume bars below each candle, confirming how strong a move is.

Choosing the Right Tick Setting

There’s no one-size-fits-all when it comes to tick chart settings. Your ideal configuration depends on your goals, the futures contract you’re trading, and market conditions.

Factors to consider:

• Liquidity of the contract:
  High-volume contracts (like ES or NQ) produce more ticks per minute than thinner markets (like lean hogs or natural gas).
• Your strategy:
• Scalping: Use smaller tick sizes (e.g., 50–200) for high-resolution views.
• Intraday trend trading: Medium tick sizes (e.g., 200–1000) offer a balance of clarity and signal reliability.
• Swing trading: Tick charts aren’t ideal — stick with time-based or range charts.
• Market volatility:
  If the market is moving quickly (e.g., during economic reports), you may want to increase your tick size to smooth out noise.

Common Tick Settings by Contract:

Source

Many platforms offer tick presets (like 133, 233, or 610) based on Fibonacci levels, which are often used in algorithmic trading systems.

Tick Charts and Volume: Understanding Momentum

Tick charts don’t just show how many trades occurred; they show how fast trades are happening. That’s why they’re a favorite for momentum traders.

When bars form quickly:

• Indicates strong buying or selling interest

• Suggests traders are piling in

• May be a sign of a breakout or reversal building

When bars form slowly:

• Signals low participation

• Often seen during lunch hours, post-news digestion, or pre-market

Pairing tick charts with volume-based indicators gives you even more context. Try using:

• Volume Profile to see which prices are attracting the most interest

• VWAP to understand mean reversion behavior intraday

• Delta volume (on platforms like ATAS or Bookmap) to track buyer vs seller pressure

When price moves quickly and with volume, the trade signal is usually stronger.

Tick Charts and Price Action Setups

Many price action strategies work better on tick charts than on time-based charts because you’re seeing the market as it unfolds, trade by trade.

Common setups include:

• Breakouts above resistance or below support:
  Faster tick charts show the breakout candle forming in real-time. You can often enter with tighter stops.

• Pullbacks during a trend:
  Look for 1–3 candle retracements on a 200-tick or 500-tick chart that bounce off previous highs/lows.

• Micro double tops/bottoms:
  Great for counter-trend scalps if confirmed with volume.

• Failed breakouts:
  Tick charts can show signs of exhaustion or absorption (e.g., long wicks, lower highs) before a reversal.

• Trend continuation flags:
  Short-term consolidation after a strong impulse move can be easier to spot with ticks.

These setups become clearer when paired with horizontal levels, VWAP, or moving averages.

Example: Using a 200-Tick Chart on MES Futures

Let’s say you’re trading MES (Micro E-mini S&P 500) during the first 30 minutes of the U.S. session.

You load a 200-tick chart and notice:

1. Pre-market high is broken with a large green candle.
2. Next bar prints quickly — another bullish candle with high volume.
3. Price pauses, forms a small doji.
4. A third bar prints as an engulfing candle — continuation confirmed. You go long, place a stop below the doji, and ride the move.

Meanwhile, a 1-minute chart might still be working on the second candle. You’d miss the breakout confirmation and optimal entry.

Pros and Cons of Tick Charts in Futures Trading

Pros:

• More responsive to real market activity: Tick charts adjust in real time based on how many trades are occurring, giving traders a more accurate read of momentum.

• Reveals short-term price patterns clearly: Microstructures like flags, pullbacks, and failed breakouts are easier to spot on tick-based charts.

• Filters out dead zones in low-volume periods: Unlike time charts that print bars on a fixed schedule, tick charts pause during inactivity, helping traders avoid noise.

• Ideal for fast-paced trading strategies: Scalpers and intraday traders benefit from the precision and speed of tick-based setups.

Cons:

• Can overwhelm beginners with too much information: Tick charts move quickly during volatile sessions and may be difficult to interpret without experience.

• Requires tuning for each contract and session: There’s no universal tick size that works for all markets, so traders must experiment to find what fits.

• Not useful for longer-term trading: Swing and position traders get more value from time-based or daily charts than from tick-based ones.

• Limited platform availability: Not all trading platforms support tick charts, and some require specific data feeds to enable them.

How to Access Tick Charts with Third-Party Platforms

MetroTrade connects to many third-party futures trading platforms that offer tick charts.

Supported platforms with tick charting:

• Sierra Chart

• MotiveWave

• ATAS

• CQG Desktop

• Rithmic Trader Pro

Each platform offers customizable tick chart options, with unique visual styles and order flow tools. All of these can be connected via Rithmic or CQG data through MetroTrade.

We’re happy to help you find the right setup based on your trading needs.
View supported third-party platforms

Best Practices for Tick Chart Trading

• Use higher timeframe context: Mark key levels on 15-min or 1-hour charts first.

• Confirm with volume: Momentum without volume is often a trap.

• Adjust tick size by product and time of day. Early session = more trades = higher tick size may be better.

• Log your trades: Journaling helps you refine what tick size works best for your setups.

• Avoid trading in chop: If bars are forming slowly and directionless, sit tight.

Discipline is key. Tick charts move fast, so your decision-making must stay controlled.

Who Should Use Tick Charts?

Best suited for:

• Scalpers looking for rapid entries and exits: Tick charts offer high-resolution data that helps scalpers time trades down to the second, especially during volatile moves.

• Day traders focused on intraday momentum: Traders who want to catch short-term trends, breakouts, and volume surges benefit from the speed and flexibility of tick-based charts.

• Order flow and price action traders: Those who analyze market microstructure or use tools like footprint charts, volume delta, or tape reading can gain clearer signals from tick data.

• Experienced traders seeking precision: Traders with a strong handle on risk management and execution will find that tick charts improve timing without relying on lagging indicators.

Not ideal for:

• Swing traders holding multi-day positions: Tick charts offer too much noise and not enough context for longer-term trade setups that play out over days or weeks.

• Traders relying on slower indicators: Strategies that depend on moving averages, MACD, or RSI over longer periods are better suited to time-based charts.

• New traders who are easily overwhelmed: The fast pace of tick charts can lead to overtrading and poor decision-making if you’re still learning the basics.

• Anyone using a platform that doesn’t support tick data: Not all brokers or charting platforms offer real tick chart functionality, and simulated versions may be inaccurate.

Common Mistakes to Avoid

Tick charts offer powerful insights for active traders, but they can also lead to confusion or losses if misused. Whether you’re just getting started or transitioning from time-based charts, it’s important to understand the common pitfalls that can come with tick-based trading.

Here are some of the most frequent mistakes traders make and how to avoid them:

• Using the same tick size across all markets: Each futures product has its own pace and volume profile. What works for MES or MNQ may be too slow or too fast for crude oil, gold, or Treasuries. Adjust your tick settings to fit the contract you’re trading.

• Overtrading during volatile sessions: When tick bars form rapidly, it’s easy to get caught in the excitement and take trades without real confirmation. Fast-moving charts don’t mean every move is tradable.

• Ignoring the bigger picture: Tick charts are great for detail, but they shouldn’t replace higher timeframe analysis. Key levels from 15-minute or hourly charts still matter, even in scalping setups.

• Choosing tick sizes that are too small: While small tick counts provide more granularity, they can also create excessive noise and false signals. Start larger and scale down only if needed.

• Forcing trades when bars are forming slowly: During quiet periods, bars may take minutes to complete. Trying to anticipate moves during these lulls often leads to poor entries.

• Using platforms without true tick data: Some platforms attempt to simulate tick charts from time-based data, which can be misleading. Make sure you’re using a platform connected to a reliable data feed like Rithmic or CQG.

• Failing to adjust for session timing: The same tick setting may behave differently during the open versus midday. Traders should adapt settings or expectations based on the time of day and session type.

• Neglecting to backtest setups: Without reviewing historical trades and setups using your preferred tick chart and strategy, you risk trading based on assumptions rather than proven results.

Conclusion

Tick charts give you a trader’s-eye view of the market — showing how trades are unfolding in real time. They let you react faster, spot momentum earlier, and fine-tune your entries and exits.

At MetroTrade, we make it easy to integrate tick charting into your trading workflow by connecting you to professional-grade platforms like Sierra Chart, MotiveWave, and Rithmic Trader Pro.

Ready to level up your charting game?
Open your MetroTrade Account and request access to tick charting platforms today.

FAQs

The content provided is for informational and educational purposes only and should not be considered trading, investment, tax, or legal advice. Futures trading involves substantial risk and is not suitable for every investor. Past performance is not indicative of future results. You should carefully consider whether trading is appropriate for your financial situation. Always consult with a licensed financial professional before making any trading decisions. MetroTrade is not liable for any losses or damages arising from the use of this content.