Inventory Grab Alert 4/30/09!

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Quote from AMT4SWA:

If you ever get a FULL understanding of Auction Market Theory, you will then learn quite frequently price is NOT always telling the truth of the current environment. Also, price ALONE does not always show the full potential REACTIVITY of levels traded. Many times price alone will not point out the most optimal areas to take trades from. I want to enter trades from optimal areas of price reactivity with the best potential for follow through.

When I go on a lot to buy a car I don't give a damn what price they are asking......what I want to know is how much inventory is stacking up out on the back lot. I want to see the potential of price to deviate from the current displayed level, and the potential reactivity in price as it moves away from what is currently displayed.

Within the process of Auction Market Theory, I want to quantify supply and demand.......where is SUPPLY and what is the DEMAND when the market trades to those levels of supply.
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AMT
But of course you must follow what ever you chose to follow.... why would you not.

I am simply pointing out to those who are following your every word on this tread that your concept of isolating MO's out of the CME is simply not possible and your Chartist is providing you a volume split based upon bid-ask quotes.

regards
f9
 
Quote from AMT4SWA:

If you ever get a FULL understanding of Auction Market Theory, you will then learn quite frequently price is NOT always telling the truth of the current environment. Also, price ALONE does not always show the full potential REACTIVITY of levels traded. Many times price alone will not point out the most optimal areas to take trades from. I want to enter trades from optimal areas of price reactivity with the best potential for follow through.
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AMT

Price is just price ... it is what you trade.
It has no pretense to be anything other than itself.
I gather that you are still at the stage of requiring assistance in order to separate s&r into useful tradeables and s&r that you leave alone.

Interestingly, ETers talk of win ratios and risk/reward ratios, but never talk of "stops pulled"

regards
f9
 
Quote from ivanbaj:

Like what is your uncle point. I bet that you will stay in no mater what the price is doing as you do not believe the price.

When I used mostly MP information my stops where huge. It takes a while for the new value to build and prove you wrong. A price spike does not make you wrong. It takes tons of cash from your account but you are not wrong yet. Or are you? What makes you wrong?
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I do not use MP, so lets not blend that concept into this discussion or we will really get off track.

By seeing the exact conviction within the actual traded order flow, I have the ability with delta to see realtime evidence when to leave entries EARLY if needed (versus just letting the market trade until it hits some arbitrary "stop"). The delta helps me to spot a degrading environment from which to decide if I stay in a trade or not.
 
Quote from fearless9:

AMT

Price is just price ... it is what you trade.

regards
f9
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It is what YOU trade! :)

I choose to look at additional information (....never at any time saying I IGNORE price) and that has worked out exceptionally well for me. :)
 
Quote from fearless9:
...............A surgeon or F1 driver has no choice other than to watch the action in front of them, anticipate the outcome and act accordingly until the operation or the race is finished.............
f9
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F9... always read your posts... you always try to see things in depth... and i want you to keep posting to keep us honest... thanks..

I trade price and volume...

and i like watching Cumulative Volume Delta for the same reason...that a Race Driver watches his indicators...

he has an incredible amount of Indicators that he monitors during the race (Heat, Speed, Oil Pressure, Tire Pressure, etc... a lot) AS WELL AS he has a constant EarPiece where his team is always yelling at him about this and that throughout the whole race...
 
Remember, there are many ways to build a car......I just like to have a reliable car!

You go off and drive your PRICE car, and I will go drive my PRICE/VOLUME car....it is really that simple. :cool:
 
Quote from AMT4SWA:

I do not use MP, so lets not blend that concept into this discussion or we will really get off track.

By seeing the exact conviction within the actual traded order flow, I have the ability with delta to see real-time evidence when to leave entries EARLY if needed (versus just letting the market trade until it hits some arbitrary "stop"). The delta helps me to spot a degrading environment from which to decide if I stay in a trade or not.
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This sounds good. I try to do the same with price.

I am starting to get it I think. If I use price I will be late. Your delta will tell you earlier that the move up is getting old. I will have to wait for the price to break down, then test and confirm that indeed the up move is over. Your method will be few steps ahead of the price only trader. Well done if it is true.
I have to say I don't know. Predictions make me uneasy.
 
Quote from veggen:

It is a pitty what his thread has turned into.

Let's get back on topic!

Anyone trade the div. at 11:15 est.?
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Hello Veggen,

The interesting thing has been the responses to my assertions regarding the integrity of of the cum delta and the MO's referred to in this thread and indeed that form the base of the OP's methodology.

Not one person has come back and mentioned that they have contacted their data provider and CME to confirm the raw data.
One person did come back with a reference to a Chartist website but no reference to any conversation with them.

regards
f9
 
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