He is speaking about a 2 POINTS stop in the ES.
To all thee would-be traders out there....
- Thread starter truth101
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He is speaking about a 2 POINTS stop in the ES.
I'm sure this is just an ambiguous way to say what we really already know - the rules in trading are quite simple, however the applications in which you use to find an 'edge' are far from simple.
It's actually ironic, price either goes up or down, yet collectively, we (myself included) have an incredibly long journey figuring out how to profit from such 'simplicity'
It's actually ironic, price either goes up or down, yet collectively, we (myself included) have an incredibly long journey figuring out how to profit from such 'simplicity'
Thank you for the question.
It's better if you suss it out yourself and here's a place to get started. Let's use the es PV bar chart as a reference point. Let's also utilize varying degrees of focus, not at an end to itself but as a tool to see something we haven't seen before.
Let yourself become color-blind for the moment and look through the eyes as a professional B&W photographer. Focus on the form of the bar and not it's color.
With the volume histogram, one looks for the volume peaks. You'll notice three things. Volume from that point will either increase into another peak, decrease into a trough or be roughly the same. Let' take out the roughly the same for the moment. Notice the range of the price bar associated with that peak, it's high and low.
What does the the next price bar (it's high and low) do in the case of increasing vol and in the case of decreasing volume relative to that range?
Each of the four cases will show up on this bar more often when volume is doing one thing and less often when volume is doing the other.
What do you see?
The two cases that make money.
Each of these are mirrors of each other. In any two bar relationship (setting aside the open and close of a bar for now) which two bar relationship indicate a trend?
Overlay the above two cases, one over the other. Match up the first bar. The superposition of the next bar is the case that makes money both ways.
btw, to anyone following - all this stuff in readily available via older wiser traders than myself within the archives of ET both past and present. I'm a student of truth not a guru. If I come across any other way than that, it's not my intention. My intention is to share the process of building the differentiated mind with respectful civil discourse in the areas that I have personally verified for myself.
I understand these concepts can stimulate negative emotions in people. I certainly experienced that at first. At some point I had to deal with the source of my negative emotions. Ultimately, in my case the pain of not understanding why I was losing money when following CW lead me to look in places for answers where my own previous judgements excluded me.
All those places were within myself.
"The path to heaven lies through heaven, and all the way to heaven is heaven." Saint Catherine of Siena
Being is the key.
In my view, co-operation is a higher level of being than competition.
You've heard the story of hell being a dinner party where everyone has forks too long to feed themselves.
Respectfulness, courtesy and humility go a long way in opening doors. The opposite behavior, hmm,... not so much.
So why am I "spewing" all the above when some folks just want to see prints, stats, logs, etc?
I understand the skepticism.
Simply, it's a promise to pay it forward. My prints won't change your life - engaging in thinking through purposeful learning will. Focusing on better feeling thoughts even more still. Yet I do not have thick skin, it's way more fun to interact with receptivity than attempting to convince anyone of anything. Arguments are a waste of time, something I stopped decades ago.
It's way more fun to be present to Aha's !!
@Sprout I think I understand and appreciate your philosophical approach , but the concept of volume must be defined to be compared in any scenario. Therefore, back to my previous, when you refer to volume bars how do you know that day 1 was missing off exchange volume and day 2 was not , etc.
Sorry that you went to this much trouble. I wasn't looking to learn, I was simply asking about the kinds of results you get with your method. I learned a while back that any time someone can't share true results, there is little point in continuing to listen.
Let me give you a direct example. There are some traders who swear by using volume profile. Sure, it makes sense, look for trades at the price areas that had the most volume. But when you analyze the kinds of trades that set up, or the trades they take, you see that volume profile on its own doesn't have very good stats behind it, and traders using just this aren't doing that spectacularly well. Sure price can sometimes turn here, but not any more than 50% of the time. What makes a trader profitable who perhaps looks at volume profile isn't the volume profile, its actually a combination of other factors.
These things usually come out when someone is asked to show traders, both the winners and losers, and stats. Most of the time, people don't share these stats because their results are crap, but they continue to hold onto the idea that what they are doing actually works, when it in fact doesn't.