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CounterTrend example - I have mentioned how I look to trade with the trend, and rarely consider "countertrend" trades, and the only ones I personally consider have volume divergences in line with key big picture points, and of course these occur less frequently than other setups. But this...

Clarification - After a question I received yesterday I just wanted to make something very clear for those of you out there following along. This is never an exercise in prediction or making calls of any kind, but rather an exercise in observing unfolding market structure (ie.. brackets...

When you have a tight consolidation that coils for a long period of time, we all know a breakout is coming. Since a consolidation is marked by patient buyers and sellers drying up above and below, we know both patient participants are now located way above and below this range. Therefore...

S/L, Of course Ive been referencing the 1260-1250 range that has been tightening for three days, and youll never see me "predict" what is going to happen next in the market, or make a "call" of any kind. Ive discussed in detail how when a range like this develops, price will eventually...

Please point out where I said "We'd be in a range all day?"

If you read the prior information referenced, you'd see I started the session with a down bias. Therefore, I took a short trade to start the day that resulted in a small loss as seen in the attached chart. Yes I take small losing trades all the time. Im looking forward to the criticism...

Never took a Velez or Pristine course...Everything for the chart I posted was discussed and referenced ahead of time, and I totally agree a chart is only good for seeing the potential for price movement thats all.

Here is an Example of how things come together for a high probability trade setup We know we are in an overall 1260-1250 bracket now, and identified possible resistance within this bracket if price was to hold. and move lower. Once price moved past this resistance on heavy volume (right)...

07-22-08 Pre-Open Comments 6:00 am Price=1250 Although this looks like a big gap down, at the moment we are simply at the bottom of 1260-1250 consolidation area...We had a false break up on low volume yesterday, and we'll have to see if the same happens today on the downside We do have...

Bighog, You are absolutely correct in striving for as simple as possible. For me, my execution now consists of price and a few moving averages at thats it...Ive stripped away everything else. I just happen to find value in knowing the bigger picture condition of the market I am trading...

07-21-08 We came into the day monitoring the tight 1260-1250 consolidation area. Price opens up above with absolutely no volume confrimation (right), and this sets the stage for price to drift back into, merge, and slightly widen the overall consolidation area. So we go into Tuesday...

Fearless, I know you are 100 percent correct! In this case I happen to think a constant method (including using CVB bars) and mind is about 98 % of the importance, and the construction of these bars is 2%, but why not get everything perfect if you can, and of course Im only guessing....

Well, the good news is that even if these bars arent constructed perfectly, this really has no bearing on my entries and exits, and If Im thrown off a tick here or there, then this too has no real bearing either (who knows maybe Im even helped a tick or two at times) They key, as mentioned it...

I agree with this completely.....What I think everyone not using CVB should do if nothing else, if take your current charts, trading plan, etc. and see how they look with appropriate CVB charts? See if this can improve what you are doing now, or not? I had no idea some software "fudges" a...

Prof, Im curious, I use Share Bar charts for all my entries, exits, etc for the main reason they "speed up and slow down according to volatilty" which is very important for what Im looking to do from a trade management standpoint etc. Is this the key advantage of turning volume into a...

Short covering and/or new longs are both buyers and the key is always if they are patient buyers or anxious buyers?.......Short covering and new longs do not have to be immediately bullish for price, no. The bullish result for price would take place if these are the final patient buyers in...

jjf, There is no doubt the "right price trading plan" can take advantage of these unfolding developments. On the other hand understanding how these developments unfold can help with making better price based decisions.

No, I dont use the T&S for this.....I use the volume ratio study that measures the ratio of up volume to down volume......From a pure matrix standpoint notice how when price is making new highs how often the ask volume levels increases dramatically (ie. ES- from hundreds of contracts to...

And here is another point that goes hand in hand with all of this. If you stop to consider all the "false breakouts" you see in a market, you will see that the very principle of dried up patient sellers (for a false breakout long), goes hand in hand with this. The patient sellers can dry...

SorL, If the patient sellers in one area dry up, then by definition they are now located way above this area (as a seller would always "prefer" to sell higher rather than lower). So at this point the new patient sellers above, are merely in the tug of war with the patient buyers below, and...