The 3-2-1 Approach: A Simplified Method for Trading Any Market
- Thread starter bthomas
- Start date
Bar Characteristics
Hombre,
The width of each equivolume bar is determined by the volume traded on that bar. The yellow portion of the bar is the value area (70% of the traded volume), the red area is the unfair high, the blue area is the unfair low, the magenta line is the mode (most volume traded), and the green line is the value weighted mean.
The histogram under the chart shows the cumulative net traded volume at the bid and the ask. The histogram on the right side of the F4 chart shows the volume traded at that level for the last 30 days.
The most important indicator above/below the bars are the little red and blue squares. The red square above a bar shows that the volume traded at the ask is decelerating. The blue square below a bar shows that the traded volue at the bid is decelerating.
This is alot more information than is available on anyone's trading dome.
Hombre,
The width of each equivolume bar is determined by the volume traded on that bar. The yellow portion of the bar is the value area (70% of the traded volume), the red area is the unfair high, the blue area is the unfair low, the magenta line is the mode (most volume traded), and the green line is the value weighted mean.
The histogram under the chart shows the cumulative net traded volume at the bid and the ask. The histogram on the right side of the F4 chart shows the volume traded at that level for the last 30 days.
The most important indicator above/below the bars are the little red and blue squares. The red square above a bar shows that the volume traded at the ask is decelerating. The blue square below a bar shows that the traded volue at the bid is decelerating.
This is alot more information than is available on anyone's trading dome.
I was wondering what advantage there is in trading the 30 yr bond vs. 10 yr T-note? Would your approach work well for the 10 yr as well? I was also wondering how closely you track the ES.
5/28 Recommendations & Results
Charles' typical recommendation for a news day trade, especially a single headline trade, is to wait for the first pullback and then enter. Here are Charles' comments and entries after the morning's news release.
F4 Comments: The research recommended a sale at 115-23/27. The OVN high was 115-28. Day session high was 115-19. News day trade. News was negative. Retracement trade with the news was a sale. Posted a sell at 114-31/115-03. First rotational high after the news release was 115-03. The recommendation remained in effect for the rest of the day. Only interested in a sale. The software produced numerous sell signals, real time too.
Charles' typical recommendation for a news day trade, especially a single headline trade, is to wait for the first pullback and then enter. Here are Charles' comments and entries after the morning's news release.
F4 Comments: The research recommended a sale at 115-23/27. The OVN high was 115-28. Day session high was 115-19. News day trade. News was negative. Retracement trade with the news was a sale. Posted a sell at 114-31/115-03. First rotational high after the news release was 115-03. The recommendation remained in effect for the rest of the day. Only interested in a sale. The software produced numerous sell signals, real time too.
The advantage for me is the 30-Year is more volatile than the 10-Year. The farther out on the yield curve you go then the more volatile the trade. Volatility equals opportunity.
On most days the trading range in the 30-Year is twice the range of the 10-Year and the 10-Year is twice the range of the 5-Year.
Because of the lower volatility in the 10-Year vs. 30-Year most yield curve traders, that I know, trade fewer 30-Year contracts per trade and more 10-Year contracts per trade.
Market Profile, Auction Market Theory and our approach to volume analysis works equally as well in the 10-Year as the 30-Year. Both markets have a high degree of hedgers.
Although most of the time the ES and the 30-Year have an inverse correlation I don't make a trade in the 30-Year based on the price/volume/time action of the ES. Too much information clouds the decision making process.
What about correlation intraday between the 3 products ?
I have heard that most successful traders scale in AND out of positions and DON'T practice all in and all out , is this true ?
30-Year, 10-Year and 5-Year have a psotive correlation 90% of the time. The yiel curve will flatten or steepen but the correlation is still positive.
There are times when the yield curve is inverted and the postive correlation turns negative.
Scaling in and out of postions works well for some traders. Personally I prefer the "all in" "all out" approach. I suppose it's more a function of personality than anything else.
5/29 Recommendations & Results
F4 Comments: the market is in a sell mode and hitting our recommended sell recommendations with amazing regularity. Sometimes your read is spot on and it is in those times that you should increase your number of trades and size. Yesterdayâs Post Market Comments recommendation was sell 114-23/27. The OVN high was 114-28. The day session post news recommendation was 114-19/23. The high was 114-215. The sell levels were lowered throughout the session. Better than this though was the F3/4 screens that picked the sell setups as the occurred during the session. It was a day that was made for the sellers.
F4 Comments: the market is in a sell mode and hitting our recommended sell recommendations with amazing regularity. Sometimes your read is spot on and it is in those times that you should increase your number of trades and size. Yesterdayâs Post Market Comments recommendation was sell 114-23/27. The OVN high was 114-28. The day session post news recommendation was 114-19/23. The high was 114-215. The sell levels were lowered throughout the session. Better than this though was the F3/4 screens that picked the sell setups as the occurred during the session. It was a day that was made for the sellers.
Is that approach of yours similar to using fake aliases to pump up your credibility, so you can fall flat on your face and expose yourself in public?
http://elitetrader.com/vb/showthread.php?s=&postid=1938829#post1938829