It's a bit embarrasing to ask this not being new to the markets, but I wonder if I have misunderstood how tick charts are created.
I always thought tick charts were created based on # of price changes. So, with a 50 tick chart, a new bar prints after 50 ticks up/down or up/up/up... or down/down/down...
But doing some more reading on this, many resources seem to claim that they plot based on # transactions.
If it's based on # transactions, a tick chart can well update without any price movement (as 50 transactions can easily happen without price moving).
Which is correct?
Thanks in advance.
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