Table of Contents
Introduction
When you first open a trading platform, you’re usually given a default time-based chart — like a 5-minute or 1-hour candlestick chart. But did you know that some professional traders don’t use time-based charts at all?
Instead, they use something called tick charts — charts that print candles based on the number of trades, not the clock.
If you’re a new trader, this might sound confusing. So in this guide, we’ll break down the difference between tick charts and time charts, explore the pros and cons of each, and help you decide which one fits your trading style best.
By the end, you’ll know how each chart type works — and how to choose the right one for your strategy, whether you’re scalping, day trading, or swing trading.
🕒 What Is a Time Chart (And Why Most Beginners Start Here)
A time chart is the most common chart type in trading platforms. Each candle or bar represents a fixed unit of time — like 1 minute, 5 minutes, 1 hour, or 1 day — regardless of how much buying or selling happens during that time.
For example, on a 5-minute chart, a new candle forms every 5 minutes, no matter how many trades were placed during that period.
✅ Why Time Charts Are Beginner-Friendly:
• Easy to understand: Candles are based on time, not trade volume or speed
• Widely used: Most education, books, and YouTube tutorials teach from time charts
• Useful for scheduling: Helps you trade during specific hours (e.g., New York open, London session)
• Supports higher timeframe structure: Great for swing trading and identifying market phases
🧠 Example:
• A 1-hour chart of EUR/USD will show 24 candles in a full day — one for each hour, regardless of how active or quiet the market is during that time.
Time charts give you a clear view of the market over time and help build your awareness of session timing, volatility cycles, and historical price behavior.
That’s why they’re the default starting point for 99% of new traders.
📈 What Is a Tick Chart (And Why Scalpers Love It)
Unlike time charts that print candles based on the clock, a tick chart prints a new candle after a set number of transactions (ticks) have occurred — regardless of how long it takes.
For example, on a 100-tick chart, a new candle is formed after every 100 trades, not after a specific time like 5 minutes or 1 hour.
🔍 Why Tick Charts Are Different:
• Volume-driven: Candles form faster during high activity and slower during quiet periods
• No time bias: Action is based on actual trades, not the passage of time
• Cleaner entries: Shows more precise price action during fast market conditions
• Ideal for scalpers: Helps spot momentum, traps, and reversals with less lag
🧠 Example:
If the market is very active (e.g., during the New York open), a 200-tick chart might form 10 candles in 5 minutes. During a quiet period, it might take 20 minutes to form the same number of candles — because fewer trades are happening.
This dynamic nature gives traders a real-time feel for momentum and order flow, especially in fast-moving markets like gold, oil, or Nasdaq.
Note: Tick charts are most commonly used by day traders, scalpers, and those who rely on precision entries using order flow, delta, or volume.
⚖️ Tick vs Time — Side-by-Side Comparison (Pros & Cons)
Both tick and time charts have their place in trading — but they serve different purposes. Here’s a simple breakdown to help you decide which is better for your trading style and goals.
Feature Time Charts Tick Charts
Basis Fixed time (e.g. 5 min, 1 hour) Fixed number of trades (e.g. 100 ticks)
Candle Speed Constant (time-based) Variable (based on activity)
Best For Swing trading, higher timeframes, beginners Scalping, day trading, active markets
Market Sessions Easy to track session opens/closes Ignores time — focuses only on trade flow
Chart Noise Smoother during low volatility Can be noisy without filters
Reaction to Volume May lag during fast moves Reacts instantly to bursts of volume
Data Required Less intensive Needs high tick data / better execution platforms
Learning Curve Easier for new traders Requires more screen time and skill
✅ Time Charts:
• Better if you’re just starting out
• Great for structure, swing trades, and clarity
• Easier to follow scheduled news, sessions, and candle patterns
✅ Tick Charts:
• Powerful for scalping and active decision-making
• Offers more detail and speed in volatile markets
• Best used with volume tools or order flow strategies
There’s no “one size fits all” — the best chart is the one that matches your goals, time availability, and strategy.
🧭 Which One Should You Use as a Beginner?
If you’re new to trading, start with time charts. They’re easier to understand, widely supported in tutorials, and perfect for building your foundation — especially if you’re learning price action, candlestick patterns, or session timing.
But that doesn’t mean tick charts should be ignored. In fact, once you’ve built confidence and start looking for precision entries or faster setups, tick charts can become a powerful upgrade — especially for day traders and scalpers.
👶 Start with Time Charts If:
• You’re learning market structure, trendlines, or support/resistance
• You want to follow daily routines or trade specific sessions
• You’re tracking news, higher timeframes, or journaling daily trades
⚡ Consider Tick Charts If:
• You’re trading fast markets like gold, oil, or Nasdaq
• You want ultra-precise entries during volatility spikes
• You use order flow, volume, or short-term momentum setups
• You’re comfortable with more screen time and faster decision-making
Pro tip: Many experienced traders combine both.
They use time charts for higher timeframe context, and tick charts for entry timing and flow confirmation — especially around key levels or breakout zones.
As a beginner, mastering time charts first gives you the structure. Tick charts come in once you’re ready to sharpen your execution.
🛠️ How to Set Up and Test Tick vs Time Charts (Step-by-Step for Beginners)
Now that you understand the difference between tick and time charts, the next step is to try them out side by side and see how they feel in real trading conditions. Here’s how to do it — even as a beginner:
✅ Step 1: Open Your Charting Platform
Most platforms like MetaTrader 5, NinjaTrader, or TradingView support time-based charts by default.
To access tick charts:
• TradingView: Use volume-based bars (a good alternative) or third-party integrations
• MetaTrader 5: Requires a plugin or data feed
• NinjaTrader: Fully supports tick charts out of the box (great for futures and prop firm traders)
✅ Step 2: Choose a Market to Compare
Pick one instrument — for example, Gold (XAU/USD) or EUR/USD — and open:
• A 5-minute time chart
• A 233-tick or 500-tick chart (common starting points for tick-based views)
✅ Step 3: Observe Candle Behavior During a Live Session
• Watch how the tick chart moves faster or slower depending on volume
• Compare breakout clarity, fakeouts, and pullback structure
• Note which chart gives you more confidence when identifying entry points
✅ Step 4: Screenshot and Journal What You See
Keep a short log:
• Which chart gave clearer setups?
• Did the tick chart help you catch or avoid noise?
• How did session timing affect each chart?
Even a few days of observation will help you decide which format suits your eye, speed, and strategy best.
Testing both chart types side-by-side is the fastest way to discover your personal preference — and tailor your strategy to what actually feels intuitive.
🧠 Final Thoughts — It’s Not About the Chart, It’s About the Context
At the end of the day, successful trading isn’t about choosing the “better” chart — it’s about using the right chart in the right context.
• Time charts give structure. They help you follow market sessions, news events, and higher timeframe analysis with clarity.
• Tick charts offer precision. They help you read momentum, volume bursts, and intraday action when every second matters.
Understanding tick vs time charts is more than a technical debate — it’s a critical decision that can shape your entire trading style and performance. For new traders, time-based charts are the usual starting point. They offer consistency, simplicity, and are widely used in trading education. Each candle forms after a set period — 1 minute, 5 minutes, 1 hour — which helps traders clearly follow market sessions, schedule trades around economic news, and analyze higher timeframe structures like trends or support/resistance. However, time charts don’t adapt to market activity.
During slow sessions, they can produce candles with little movement; during high volatility, they may lag and hide important details. This is where tick charts come in. Instead of candles forming based on the clock, tick charts print new bars after a fixed number of transactions. That means faster updates during volatility and slower movement in quiet markets — giving you a real-time glimpse of activity, momentum, and volume.
Tick charts are especially favored by scalpers and short-term traders in fast-moving markets like gold or oil, where every second counts. They help expose momentum bursts, false breakouts, and order flow dynamics that time charts often miss. However, they do require more screen time, a stronger platform (like NinjaTrader), and an understanding of volume and execution speed.
Still, as you gain experience, tick charts can drastically improve your entry timing and overall decision-making. In fact, many professional traders combine both — they use time charts for structure and direction, then switch to tick charts for precise execution. If you’re ready to test both chart types, we recommend starting with a platform like NinjaTrader — which supports tick charts natively and gives you access to detailed futures data.
Meanwhile, building your knowledge around these tools is crucial. For example, if you want to learn how moving averages behave differently on each chart type, our guide What Is a Moving Average in Trading? is a great next read. You’ll discover how EMAs can help smooth tick chart noise or complement structure on time charts. The key takeaway is this: no chart is “better” universally.
Tick charts offer flexibility and precision; time charts offer structure and scheduling. Your choice depends on your strategy, goals, and time availability. For beginners, start with time charts, get confident in market structure, and add tick charts as you develop. By testing both side by side, journaling your insights, and refining your entries, you’ll become a more adaptable, well-rounded trader.
New traders should master time charts first — they teach discipline, structure, and patience. But as you level up, tick charts can help you time entries like a sniper, especially in fast-moving markets like gold, oil, or NASDAQ futures.
Many professionals don’t choose between them — they combine both. They build their plan on timeframes and execute their entries on ticks.
No chart will make you profitable on its own. But understanding how to use both can turn you into a more complete, adaptable trader — one who reads the market, not just the candles.