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Trouble interpreting price/volume/support/resistance
- Thread starter abxs
- Start date
Quote from abxs:
I'm trying very hard to understand the relationships that move the market. Based on essentials like support and resistance I try to determine a direction of the trend. Price is the main element I focus on, using volume to support my hypotheses.
Unfortunately it doesn't really seem to work out, I've been trying at this for a couple of months now and each time I think I got/see something and implement it after backtesting, it just doesn't seem to work.
Anybody who uses similar methodology and can give his or her opinion please? I'm trying to look at this from other perspectives but don't know what I'm missing or doing wrong here.
Strongly suggest you look at dbphoenix's threads on Trading By Price and Plotting S/R at t2w.com. They should clarify a lot of what is confusing you.
Quote from Lamont_C:
Strongly suggest you look at dbphoenix's threads on Trading By Price and Plotting S/R at t2w.com. They should clarify a lot of what is confusing you.
Thanks for the suggesting. I read about everything I could read, I checked out all his posts and started with his PDF files about demand/supply which I btw found to be very good.
Nevertheless, somehow it won't work when I try my hand at it. If anybody could give any suggestions or directions I would very much appreciate it...
Quote from abxs:
I'm trying very hard to understand the relationships that move the market. Based on essentials like support and resistance I try to determine a direction of the trend. Price is the main element I focus on, using volume to support my hypotheses.
Unfortunately it doesn't really seem to work out, I've been trying at this for a couple of months now and each time I think I got/see something and implement it after backtesting, it just doesn't seem to work.
Anybody who uses similar methodology and can give his or her opinion please? I'm trying to look at this from other perspectives but don't know what I'm missing or doing wrong here.
Attached you find a first chart where I noted my entry point.
If you were going to play a bounce off that support zone you should have been long 6 candles prior to the one you entered (low probability entry.....guess trade)......that was the first time near your actual entry where that support zone was tested (you got in way to late after another re-test of the support). Another big factor that I see as a terrible reason to get long in that area was the market delta was shifting VERY NEGATIVE (more selling than buying). Entering a long trade AGAINST the "delta" there is exceptional low probability. Learn Market Delta and you will understand the movements of price SSSSOOOOOO much better.
Here is an example of the use of "delta" information..........
5Pillars
Registered: May 2006
Posts: 340
07-28-06 12:34 AM
Figured I throw out a few more examples from today for those who are new to Market Delta charts.
Here are two of about 8 really great scalp set-ups from today....
The first chart shows a great long scalp area right at the end of the 08:40 (central time...right near the market open) bar as the start of the 08:45 bar began. The market delta out of the cash open was positive, so the first pullback after the initial surge gave a good area about 08:40 to make a scalp long entry (going for 2, 3, or 4 ticks...whatever is your style). The delta climbed more positive as the 08:45 bar was forming and anyone could have seen the increased rate of buying during this period. Long entries from 1280.00 or below were optimal for this method at this time.
http://www.ttrader.com/mycharts/dis...Pillars&id=1699
My next example was right after the delta shifted to negative on the day. There was a perfect set-up for a short scalp as the 09:40 bar finished and the 09:45 bar was forming. The optimal short entry here would have been around 1276.25 to as low as 1275.75 for another quickie....LOL!
http://www.ttrader.com/mycharts/dis...Pillars&id=1699
These were two simple scalp trade set-ups from today with the overall day and intrabar "Delta" at your back.
Edit/Delete ⢠Quote ⢠Complai
5Pillars
Registered: May 2006
Posts: 340
07-28-06 12:34 AM
Figured I throw out a few more examples from today for those who are new to Market Delta charts.
Here are two of about 8 really great scalp set-ups from today....
The first chart shows a great long scalp area right at the end of the 08:40 (central time...right near the market open) bar as the start of the 08:45 bar began. The market delta out of the cash open was positive, so the first pullback after the initial surge gave a good area about 08:40 to make a scalp long entry (going for 2, 3, or 4 ticks...whatever is your style). The delta climbed more positive as the 08:45 bar was forming and anyone could have seen the increased rate of buying during this period. Long entries from 1280.00 or below were optimal for this method at this time.
http://www.ttrader.com/mycharts/dis...Pillars&id=1699
My next example was right after the delta shifted to negative on the day. There was a perfect set-up for a short scalp as the 09:40 bar finished and the 09:45 bar was forming. The optimal short entry here would have been around 1276.25 to as low as 1275.75 for another quickie....LOL!
http://www.ttrader.com/mycharts/dis...Pillars&id=1699
These were two simple scalp trade set-ups from today with the overall day and intrabar "Delta" at your back.
Edit/Delete ⢠Quote ⢠Complai
-----------------------------------Quote from abxs:
btw, any idea why he isn't active on this forum anymore?
You can search his last few weeks here on ET. Mr Burrows(dbphoenix) expects all to "bow down" to his religion or perish. Yes he has a lot of good ideas but......... enough is enough sometimes. agpilot
Quote from agpilot:
-----------------------------------
You can search his last few weeks here on ET. Mr Burrows(dbphoenix) expects all to "convert" to his religion or perish. Yes he has a lot of good ideas but......... enough is enough sometimes. agpilot
I've seen no evidence of this. He does expect traders to take the responsibility for their own results rather than blaming them on something or somebody else, but that's hardly a "religion".