Measuring trade intensity to detect reversals

Quote from AMT4SWA:

Perfect area of price there to sell imo....great trade! We had three minor levels of SHORT inventory that were neutralized right as price traded up to the 1088.75's (those holding SHORT positions all suddenly capitulated). Also, some of those in LONG positions from lower pricing levels were covering into that small zone of capitulation (winners taking profits into the losers bailing), with some additional newly initiating sellers joining trade too. That is a perfect set up to look for in the ES for intraday trades that will cause a combined TI event.

Triple level minor Inventory Grab SHORT off 1088.75's ..... https://www2.gotomeeting.com/register/970572819

This way you can see why you had a spike in your overall pace of the tape.....from the various TI events all taking place in concert into and off the 1088.75's traded.
More...
Actually that was the wrong link, here is what I was going to show you.......

http://www.charthub.com/images/2010/05/24/FulcrumTrader_CD_ESM10

You can see the three Delta Threshold levels I was tracking that all went neutral with the trade up to 1088.75's (so three indexed levels of resting SHORT inventory all unwound at about the same time...."losers" capitulating).
 
Quote from AMT4SWA:

Actually that was the wrong link, here is what I was going to show you.......

http://www.charthub.com/images/2010/05/24/FulcrumTrader_CD_ESM10

You can see the three Delta Threshold levels I was tracking that all went neutral with the trade up to 1088.75's (so three indexed levels of resting SHORT inventory all unwound at about the same time...."losers" capitulating).
More...

Nice chart. Do you have an explanation for why CD sometimes will sometimes pullback to the tick to a prior level and then reverse and go the original direction? I think you call that neutralizing. But when it does it to the tick it's pretty amazing.
 
Quote from cunparis:

Nice chart. Do you have an explanation for why CD sometimes will sometimes pullback to the tick to a prior level and then reverse and go the original direction? I think you call that neutralizing. But when it does it to the tick it's pretty amazing.
More...

I will let Chris explain neutralization as he really knows what he is talking about. I just wanted to post a picture of what you were talking about but on a bigger scale. This morning the CD traded all the way down to the lowest point that this contract has traded......the CD lowest point was from last friday when we traded tot he low 1150s. If you notice, this morning the long holders all got cleaned out(neutralized) and then started to trade up since then....quite amazing.

http://www.charthub.com/images/2010/05/25/Delta_bars.png
 
Quote from cunparis:

Just google Trade With The Flow or Pace of Tape and you'll find it available on my blog. I keep the latest version there so it's centralized.
More...


I was looking at one of your videos, can you explain why you use a 45 minute time frame on es. I am not saying it is wrong, I find it interesting how people use different time frames. :)
 
Quote from kinggyppo:

I was looking at one of your videos, can you explain why you use a 45 minute time frame on es. I am not saying it is wrong, I find it interesting how people use different time frames. :)
More...

For cycles I use multiples of 3. So the daily is 415 and / 3 = 135 / 3 = 45 /3 = 15.

for tick charts I use 500/1500/4500/13500/40500

You can use any multiple you like, but 3 seems to work well for me.

Then I look for cycles on a timeframe in the same direction as a timeframe higher up. for example a pullback on 45 min in direction of daily.

I plan to make videos explaining this as it can be complicated. but it really helps to see the fractal nature of the markets.

For the other guy: CD is cumulative delta.
 
Quote from kinggyppo:

thanks nice blog. I will check it out you may want to check out:

cycles what cycles, interesting ideas about cycle analysis.
More...

Do you have a link?

BTW I took a trade off that 45 min chart today. Went short at 84 and took 4 pts off and letting the 2nd run a bit. The 45min works very well. :)

attachment.php


Cheers.
 

Attachments

You must log in or register to reply here.
Back
Top