Iterative Refinement

Quote from Spydertrader:

See Attached.

For the folks who follow equities (or anyone else with an interest), why not try out the WMCN Drill on the attached FMCN Daily Chart. I have left the MACD and Stochastics in place for those who still use them, but do not recommend their continued use.

- Spydertrader

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1878402>
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I'd say we have peak volume, and a bar with less volatility so expect change.
If I take your clue in account, I'd say expect first flaw, then FTT.
 
I got short SCOR today it had pretty good volume on the 9:30 bar and was headed down nicely. Then Im sitting through the 10:00 bar watching losses pile up on barely no volume. The price is moving up on very little volume so I'm thinking its a flaw so I'm gonna hold. This is as of right now. I'm already out of the money considerably.

Can someone critique this trade or the thought process based on volume? I want to feel comfortable with reading volume but the price loss still makes me feel absolutely unsure of myself.

Ive heard people speak about how they've become not afraid of the market because the signals and the volume they read tell them what they need to know. This seems like a situation where I should feel fine but I don't.

Comments appreciated
 

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Quote from innersky:

I'd say we have peak volume, and a bar with less volatility so expect change.
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The market provided the Peak Volume signal (which you recognized) which informs the trader to expect change. Another example of how learning the Equities Side of things can provide a benefit to trading the Futures Side.

Nicely done.

Peak Volume - everyone should learn to recognize when it arrives, as well as, (and this is the part most people leave out), the subtle differences which exist when it appears the market signalled Peak Volume, compared to when the market actually signalled Peak Volume.

What clue would I expect most people missed? According to the chart posted, not one time when FMCN hit Peak Volume, did Price continue in the same direction on the next day.

The market is handing out free money. Time to learn to reach down and pick it up. :D

- Spydertrader
 
Quote from Spydertrader:

The market provided the Peak Volume signal (which you recognized) which informs the trader to expect change. Another example of how learning the Equities Side of things can provide a benefit to trading the Futures Side.

Nicely done.

Peak Volume - everyone should learn to recognize when it arrives, as well as, (and this is the part most people leave out), the subtle differences which exist when it appears the market signalled Peak Volume, compared to when the market actually signalled Peak Volume.

What clue would I expect most people missed? According to the chart posted, not one time when FMCN hit Peak Volume, did Price continue in the same direction on the next day.

The market is handing out free money. Time to learn to reach down and pick it up. :D

- Spydertrader
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Oh man, didn't have time to get to that drill. Maybe we can try another one sometime? Thanks for the information. :)
 
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