Understanding Reversals

[happyscalpie]

Excellent hindsight charting.

Lots of real time calls by maxinger. refer to his back dated journals & pull out those charts. real value discussion centers around OP's topic on reversals. make this forum better with positive discussion. the man is not even attempting to show off his d*** size or sell anything.

I stopped using CVBs long ago ...Whether or not you yourself use them is truly a matter of personal choice, or "style".

For examples of reversals using ordinary volume, see here to here (a dozen or so).

My current preference is for tick charts, though I haven't justified its use over volume based bars just yet. in my opinion, both show order flow more cleanly that time based charts. the advantage of time based charts is a clearer read on volume. 2 streams leading to the same river, as you say 'style'

 

[maxinger]

Excellent hindsight charting.

No comment to your sarcastic or useful or destructive or constructive or egoistical remark.

 

[learner2007]

Excellent hindsight charting.

Or, maybe, maxinger knows something you don't! His chart shows a very basic indication in TA that is easy to recognize and trade real time.

 

[PAAddict]

From this coarse view, your volume gaussian’s are not coupled to the actual moves in the progression of trend, a volatility expansion, a failure to traverse, nor the crossover of a RTL.

It’s like trying to drive a fast car with very loose steering, bad shocks, old brakes and a lagging throttle on a wIndy windy road,...

If you want a simple answer, others will undoubtedly chime in.

If you number your bars, it will be easier to comment.

Hi Sprout, great to see you found your way here as well! I am doing the whole Hershey drill, but it takes time as it is not the only approach I am following. So once I have the toolkit in my head I will be in a better position to interact with you regarding that method.

 

[PAAddict]

Good luck. It is not as easy as some like to think.

Thanks, and I know is not easy, so I am not expecting to find the answer fast. But It is something I never explored before so I want to see where my exploration gets me, perhaps nowhere and I wont be able to make this a tradable system or perhaps I will, I just hope to learn something new in the process.

 

[PAAddict]

1M timeframe may be too fast for you, if your just learning.Try higher timeframes like 4H, where stronger reversals occur.

Hi, thanks for your comment, when you say that the 4H timeframe offers stronger reversals, you mean that Support and Resistance Levels visible in the 4H are more important in order to start a Reversal position, or that Reversals that are visible in the 4H have less chances of becoming breakouts?

 

[PAAddict]

I totally agree.
To play reversal, don't watch 1 min timeframe, there are too many fake reversals.
IMO, 1 min is for 1/2 pts scalpers (majority of losers), not reversal traders.

CM

Hi, thanks for the comment. By fake reversal do you mean a Reversal that turns into congestion instead of a strong trend?

 

[PAAddict]

From which time zone are the timings shown on your charts, please?

New York

 

[fordewind]

Hi, thanks for your comment, when you say that the 4H timeframe offers stronger reversals, you mean that Support and Resistance Levels visible in the 4H are more important in order to start a Reversal position, or that Reversals that are visible in the 4H have less chances of becoming breakouts?

No.Any timeframes have the same chances for breakout.4H is jut to get you started comfortably.

 

[Zodiac4u]

In this case using volume and a 1 min chart is creating too many signals. The commission costs and slippage in this program will make this analysis be sub-par.

To think your opinions are the only ones that count.