Time-Based Charts

Time-based charts generate a new bar or line point after a set amount of time has passed. Depending on your preferences, this can be anywhere from one minute to a week or year.

Trade-Based Charts

A trade-based approach will use what is commonly referred to as a “tick chart” to help visualize the momentum behind the move in price. A tick chart generates a new bar or line point after a certain number of trades have occurred.

Tick charts will generate new bars faster during time of high volume and more slowly during times of low volume. The speed of new bars being formed may allow a trader to better visualize increasing and decreasing volume in a market.

External

cmegroup.com/chart-types-candlestick-line-bar