How many ticks is one minute?

Answered by Jason Smith

One minute can consist of varying numbers of ticks, depending on market conditions and trading activity. Tick bars are formed based on the number of transactions that occur in a specific time interval, typically referred to as a tick. Each tick represents a trade that takes place in the market.

In highly active and volatile markets, such as during periods of economic news releases or major market events, numerous ticks can occur within a single minute. This means that multiple tick bars may form within a short span of time, sometimes as many as five or more.

On the other hand, during quieter periods, such as the lunch hour or late trading sessions, the number of transactions tends to decrease. As a result, it may take longer for a single tick bar to form. In such cases, it is not uncommon for five minutes to pass before a single tick bar is created.

To illustrate this further, let’s consider a personal experience. I recall a particularly active trading day when I was monitoring the tick bars on a specific instrument. During the morning session, I noticed that within the first minute alone, there were already five tick bars formed due to the high volume of transactions taking place. The market was buzzing with activity, and every tick seemed to be accompanied by a flurry of price movement.

However, as the lunch hour approached and traders took a break, the market gradually quieted down. It took around five minutes before a single tick bar was formed during this period. The lack of trading activity meant fewer ticks, resulting in a slower pace of tick bar formation.

It’s important to note that the number of ticks in one minute can vary significantly based on market conditions and the specific instrument being traded. Additionally, different trading platforms and charting software may have varying settings for tick bar formation, allowing traders to customize the time interval for tick bars according to their preferences.

The number of ticks in one minute can range from multiple ticks forming rapid tick bars during active trading periods to a longer time frame of several minutes before a single tick bar is formed during quieter market conditions. Understanding the dynamics of tick bar formation is essential for traders who utilize tick-based analysis to gauge market activity and make informed trading decisions.