There is no such thing as price action.

Quote from vingbel:

Okay, I beginning to get your style... I think!

1) You look at oscillations between two points? S and R? Or two other points? Trend lines?

2) Then you trade as the price bounces off these extremes and you determine entries an exits by using a smaller time frame within a larger one?

3) When you use, 7, 49, etc., are you referring to multiples of seven of volume, ticks or what? Like 7000 shares, etc.?
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Very good.
The only thing to add is that those extreme oscillations on the slower chart is where I define "Trend". Then the extreme oscillations on the faster chart are my entry and exit points.
 
Quote from vingbel:


I might be starting to agree with this. That PA is reading the DOM.

Reading charts would be reading charts or TA.

Now, examining this more closely, on the DOM, the number of contracts or shares traded at certain prices, establishes the extremes of each move. That's how S/R shows itself on the DOM. It's a number -- A price above which or below which the stock/contract will not move... for the time being.
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Put your magnifying glass back in your pocket. You need a great deal of screen time to really get a handle on reading the DOM.
I think what is confusing you is the term (reading the Dom) It is really just watching the Dom price movements (BID/ASK). For example observing the speed of the price movements and or seeing how the Bid/ASK bounce around at a specific value.
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Would you say the number of contracts/shares traded at that price helps confirm the strength of that S/R at that moment as your "reading" the DOM?
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For me! It only tells me what that specific price was at the time the trade was made! The quantity traded at a specific price is unknown in my book and it would have to be confirmed by time and sales. I could care less about quantity being offered or quantity being traded. I get in when I think its about to go up or down.

As a further note: For me! It's harder to read the Dom trading the ES. I find it is a lot easier to identify a specific weakness or strength watching the Dom's movements with the Russell or The NAZ! My reasoning behind this phenomenon is because of the liquidity in the ES and the lack of with the others.
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Quote from slapshot:

Could you enlighten me on what you mean by this statement?

Any chart that is used is going to have variables - that is why a chart is even needed, to plot said variables.

(I must not be understanding the context of the statement?)

example of the kind of variable I mean:

- price decides to skip over a couple of ticks before the next print - yet the bar will show just the same as if each tick had printed - therefore one could say that those 2 bars have variable composition but that they both may still indicate a breakout or whatever.
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We live in an imperfect world and in a trading environment we can not eliminate ALL variables but we can eliminate as many as humanly possible.

When it cans to VIEWING price movement we only have a chart. Yes, you can SEE price movement in the DOM but you can not see the FLOW. This FLOW is important the same way one see music FLOW. The more seamless and smooth the better it sounds (LOOKS). To us as traders, what we VIEW is important. TO be able to VIEW the markets with as much clarity as possible is important to our consistency and overall profitability.

All charts are based in either time, transactions or range and all of these contain a varying number of shares or contracts traded per individual bar. This varying nature of the construction of those bars cause you as a trader to see unnecessary noise in the way price FLOWS. In other words, there is no stability to the volume contained in those chart bars. Think of it as static while listening to a piece of music. It adds to the confusion of the environment.

I know this is a "left field" statement in relation to price movement but once you build a chart using volume bars and put it next to a simple chart using; time, ticks (transactions) or range you will SEE what I'm talking about. The price chart smooths out. this smoothing effect works into all of your indicators as well. this is why I only use a single indicator.

With a clear picture of price direction and it's relative strength, why would anyone need more than a single indicator to confirm what they are already SEEING in price movement.

Hope this helps.
 
Quote from ProfLogic:

We live in an imperfect world and in a trading environment we can not eliminate ALL variables but we can eliminate as many as humanly possible.

When it cans to VIEWING price movement we only have a chart. Yes, you can SEE price movement in the DOM but you can not see the FLOW. This FLOW is important the same way one see music FLOW. The more seamless and smooth the better it sounds (LOOKS). To us as traders, what we VIEW is important. TO be able to VIEW the markets with as much clarity as possible is important to our consistency and overall profitability.

All charts are based in either time, transactions or range and all of these contain a varying number of shares or contracts traded per individual bar. This varying nature of the construction of those bars cause you as a trader to see unnecessary noise in the way price FLOWS. In other words, there is no stability to the volume contained in those chart bars. Think of it as static while listening to a piece of music. It adds to the confusion of the environment.

I know this is a "left field" statement in relation to price movement but once you build a chart using volume bars and put it next to a simple chart using; time, ticks (transactions) or range you will SEE what I'm talking about. The price chart smooths out. this smoothing effect works into all of your indicators as well. this is why I only use a single indicator.

With a clear picture of price direction and it's relative strength, why would anyone need more than a single indicator to confirm what they are already SEEING in price movement.

Hope this helps.
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How do you interpret the varying range of volume bars? The longer bars show you that the price fluctuated across a broader price range and the shorter bars, like a doji, so you that price consolidated around a value. So like a doji, do you see that these shorter volume bars mean there might be a reversal headed your way? (Excuse the analogy as I know it's not quite right, but you get the idea.)
 
Quote from vingbel:

How do you interpret the varying range of volume bars? The longer bars show you that the price fluctuated across a broader price range and the shorter bars, like a doji, so you that price consolidated around a value. So like a doji, do you see that these shorter volume bars mean there might be a reversal headed your way? (Excuse the analogy as I know it's not quite right, but you get the idea.)
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The individual bars only become relevant once you have a trade set up begin which starts with price oscillations. Here is a sep by step look at what I want to see is a typical trade.

1. Trend - As specifically defined on the particular chart I am Trading. (SEE Chart - Trend is listed in upper left corner of indicator portion of chart) Trend is only good when used as a sign of the overall strength of that particualr chart.

2. Trade Set Up - Where price is creating a PPF (Physical Price Failure), price pysically failing to create a HH or LL where prices' TARGET is a Breach (a HH or LL).

3. Momentum Confirmation - Where momentum (histogram) has confirmed with the creation and completion of a top or bottom at an extreme level (above the Prime line). That is the black horizontal line on the indicator. This is confirming that price will now drop to at least challenge the last oscillation, support at 1216.50 for the first trade and 1212.25 on the second.

4. Trigger or execution point - a faster oscillation of price again showing a failure to create a HH.

If I can confirm that a Bear Trend exists on the particular chart I am trading AND I can confirm in real-time that price is making an oscillation LH compared to the last confirmed oscillation Resistance top, then at my trigger I go short with a target of the last confirmed support bottom. I only trade when PERFECT set ups like this exist in the many markets I watch. Patience is a virtue.
 

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