The 3-2-1 Approach: A Simplified Method for Trading Any Market

Quote from bthomas:

I achieved my business plan before 9:30EST today.
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These guys might be real ... I don't really know, but in game that is filled with nothing but smoke and mirrors, they sound pretty solid.

I wish I had time to investigate (for my own curiousity, and because I am a trader). But what I have is working for me and I don't have time to spend on other non-essentials. Because ten days wouldn't be able to tell if they were real or not ... more like ten months.

But until I do spend that time on their product, I can't say via PM or in public that they are not what they seem to be.

Good trading.
 
Quote from bthomas:

6/17 News Day Trade

The high is not taken out, we get a deceleration square (which means that buying is drying up), an S sell indicator, and a rotational arrow, it's time to go short. You can see how the pullbacks worked all the way down.
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When would I have seen the "S" and the rotational arrow to enter a short position in this example ? Right after the bar's close ?
 
http://www.elitetrader.com/vb/attachment.php?s=&postid=1960511


If you take a look at the 9:40 a.m. bar in the enclosed chart you will see what we refer to as a "Balance Bar" or a symetrical profile. The bar has an 'S' and a triangle indicating a rotational high and a trend sell. Notice the pink squares in the two prior bars indicating no buyers (deceleration) at the 112.13 level (also a High Volume Number).

Selling one tic below the low of the 9:40 Balance Bar is a high probabilty trade. A buy stop one tic above the high of the same bar is your protection.

There is another Balance Bar at approximately 10:20 a.m. One would trade it the same way as the 9:40 Balance Bar.

I understand that some of you are going to say it's easy to see "after the fact" but please remeber that Balance Bars, like the ones in my chart, take 5 minutes to develop and because they are symetrical are easy to spot.

Enterring the trade with a stop order typically will give you time to get in while protecting yourself on the opposite side of the Balance Bar with a protective stop.

Balance Bar trades and other types of higher probability trades are evaluated, discussed and executed in the TradeMaven Inside Edge Traders Room throughout the day.

Thanks,
 
Chart Types

The Market Profile charts that I post are the standard 30 minutes per TPO charts. The F3 charts are either 5 minute charts or 2500v charts. The F3 is the chart that shows the volume traded at each price level. The F4 charts are usually 5 minute charts. The F4 is the volumetric chart in which the width of the bar shows the relative volume traded on that bar.
 
OK, I see now that ZAL's F3 chart is a 2500V chart, so that explains the bar closes.

Following up on an early question in this thread, I'd like to make sure I understand how the indicators on the bars operate.

Do the blue/pink boxes, up/down arrows, and "B"/"S" letters all appear at the bar close, and not change thereafter? I understand that some of them may appear or disappear while the bar is forming, but I'd like confirmation that those indicators do not change once the bar closes.

Thanks.
 
Indicators

The blue and pink boxes are the strongest indicators. They represent buying or selling deceleration. Once a bar is closed they are fixed.

The S/B, indicating sell or buy, and the triangles, indicating a possible rotational high or low can shift from one bar to the next. The dot indicating an exact double top or bottom, is fixed once the bar is closed.

All should be used in the context of the day's trading. For example, let's say there is a news announcement that is supportive of the bond and the market is moving up. Then we get a pink square and a rotational down arrow. This doesn't mean you want to sell the market. It should be interpreted as the start of a pullback, after which you would want to buy the market.

Once the market has pulled back, let's say 8 to 12 ticks, if you then get a blue square (deceleration) and an up rotational arrow, you would typically buy at the close of that bar.

I hope this explanation helps. All the TM indicators are real time and data based, not computations of moving averages or some such crossing lines.
 
So, am I understanding your reply properly in assessing that the B/S and up/down arrows can change after a bar close (i.e. can appear retroactively)?
 
So they stop moving only when the move that they are predicting actually materializes?

Pardon me if I'm getting this wrong, but it sounds like something useful for an analyst or someone selling room subscriptions, but not for a trader putting money on the line.
 
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