Hey everyone, it's me again, i posted when i reached page 77 2 days ago. now i'm reading page 223, but i'm wondering if i can get a brief response on the important developments in tools and strategies if any. i'm still going to read on to catch up, just wanted to keep track of where you guys are at right now. Again thnx Anek for starting this constructive thread and i appreciate your input as well as others.......................
AHG - Profitable Strategy for Struggling Traders
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bluedemon77
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Quote from Thunderdog:
Thanks for the response. I think I understand your point. However, by using volume bars you are ipso facto placing at least some predictive value on volume. If you did not place any predictive value on volume (be it either supportive or anticipatory), then you would likely not use volume in any manner. Please understand that I am not being argumentative. Rather, I am just trying to clarify your view as I see it. In any event, it seems that both charts can be made to look ~fairly similar, depending on the time value or volume level used. Just chewing the fat on a "Friday."
TD, I don't think there is a HUGE advantage either way and I agree that making the charts look similar is a matter of tweaking the values. Based on my own research and the more substantial published research I discussed in the "Price vs. Volume" thread I started, I came to the conclusion that volume leads price about half the time, i.e. watching volume does not give you an edge.
I see volume as a way of weighting the value of a bar to average out some of the randomness of individual transactions. That's not a lot different than using a 5 minute chart instead of a 1 minute chart, which accomplishes the same thing. It minimizes the effect of random fluctuations so you can see the trend better.
I think constant volume bars work better for me, but it's more of a personal preference than anything else. It's kind of like some people prefer candlesticks and some like plain OHLC bars. Same data; different way of looking at it.
Looks like a lot of buy and hold today in anticipation of a pop on Friday / Monday.
Here is my chart for today...
A pretty good day for me, but could have been better if I didn't break the AHG rules...I know, I know, discipline. (I'm learning)
Notice how when I followed the rules, I won. When I didn't, I lost.
A pretty good day for me, but could have been better if I didn't break the AHG rules...I know, I know, discipline. (I'm learning)
Notice how when I followed the rules, I won. When I didn't, I lost.
I think this question has been asked by others in various ways but I have yet to see a firm response.
Let's say nq has been uptrending (minimum 2HH/2HL) and its up 40 points. Then you see the first LH and a break of a trendline. Now I understand one can go short if there is a DT but for now let's say that one gets a LL, a second LH then another LL. Now we have a proven downtrend. Let's say it was about 10 points. At this point there is some indecision. One could short if certain criteria are met, for eg the popup starts to show confirmed signs of weakness (eg a bearish engulfing candle) or fails to break the TL formed by those LHs, etc. AND the next major support is far enough away that one has a minimum r:r ratio of 1:1. HOWEVER, the downtrend is much smaller than the preceeding uptrend and there is always the chance that the uptrend might continue, say at a 50% fib retrace.
How do u guys make the decision? ie do u short the microdowntrend or do u wait for a resumption of the macro uptrend?
Sorry the the length of this post.
Let's say nq has been uptrending (minimum 2HH/2HL) and its up 40 points. Then you see the first LH and a break of a trendline. Now I understand one can go short if there is a DT but for now let's say that one gets a LL, a second LH then another LL. Now we have a proven downtrend. Let's say it was about 10 points. At this point there is some indecision. One could short if certain criteria are met, for eg the popup starts to show confirmed signs of weakness (eg a bearish engulfing candle) or fails to break the TL formed by those LHs, etc. AND the next major support is far enough away that one has a minimum r:r ratio of 1:1. HOWEVER, the downtrend is much smaller than the preceeding uptrend and there is always the chance that the uptrend might continue, say at a 50% fib retrace.
How do u guys make the decision? ie do u short the microdowntrend or do u wait for a resumption of the macro uptrend?
Sorry the the length of this post.
I have IB account and use QT for charting.
At the moment I am paper trading but when I get more serious will it be advisable to get another source for data provider and other charting software as well. Cost is no consideration - would like to get best tools.
Comments and advise much appreciated. Thanks
At the moment I am paper trading but when I get more serious will it be advisable to get another source for data provider and other charting software as well. Cost is no consideration - would like to get best tools.
Comments and advise much appreciated. Thanks
Those are self plotted support and resistance from yesterday and maybe a day or two prior.
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