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Tick Data vs OHLC — you're trading on 0.002% of available data

quant.dhawan · 2026-01-17T13:29:44.000Z · in Quant & Trading
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100k ft — What is this?

Tick Data vs OHLC — you're trading on 0.002% of available data
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50k ft — Why care?

Daily OHLC candles compress ~86,400 seconds of market data into 4 numbers — throwing away 99.998% of information. Makes the case for tick-level and limit order book analysis over candle-based trading.
finance/tradingmarket-microstructurequant

10k ft — Key takeaways

• OHLC discards 99.998% of market data • Tick-level analysis reveals hidden microstructure • Candle-based trading is information-poor

5k ft — Tools & techniques

Python LOB Analysis, Market Microstructure, Tick Data Analysis, algorithmic trading

1k ft — Deep-dive / try it

​MATH CHECK: YOU ARE TRADING ON 0.002% DATA. 📉 ​Unpopular Opinion: If you are only looking at OHLC candles, you aren't trading. You're gambling. ​The math is brutal: A single daily candle compresses ~170,000 institutional trades into just 4 numbers.(Open, High, Low, Close). ​That means you are actively ignoring 99.998% of the reality—the liquidity gaps, the hidden iceberg orders, and the real bid-ask pressure—just to draw a support line. ​🚩 The Hard Question: Is that price action really "market noise"? Or is it just data you haven't learned how to read yet? #quantfinance #algorithmictrading #python #statistics #trading quant.dhawan   24w I’m expecting heat from the Chartists on this one. 🖍️👇 ​Think about it: If a doctor ignored 170,000 symptoms and only checked 4, would you trust their…
Transcript excerpt
You're trading using only 0.02% of the information, a one-day candlestick hides 170,000 institutional orders that actually move the price. You see the drawing? We see everything, charts record the past, data predicts the future, in generating alpha, we believe.

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Collection: Quant & Trading