ok, cool. whatever works is good.
surf
Why do people use Volume, Range and Tic charts?
- Thread starter fearless9
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ok, cool. whatever works is good.
surf
This the part of ET that I just love and find very interesting.
That notion "this is where you are very wrong" implies that the author is indeed very right.
The only two things that we all know on ET are the Username and time of posting.
The time of posting does in no way verify the time of writing, if that is at all important and the Username is one person's fantasy.
So basically the two things that we think that we know, are useless, although there can be a case made for timing if in fact the Reader is all interested. ( I am not)
Which brings us back to the contents of the posts.
So now the notion "this is where you are very wrong" finds it's roots in one of two places.
Either the author has worked his/her way through the myriad inputs and variables that can go into trading and can prove to a reasonable fellow trader that a statement or input is incorrect ( most unlikely here on ET) or he/she has not developed their understanding and competence to the level of the discussion at hand. (most likely here on ET)
In amongst the strongly stated notions here on ET lie some quietly expressed absolute gems of information.
Whether Readers can recognize them when they appear and whether they fit into what they consider to be their style of trading (sim, fantasy or otherwise) is entirely up to the Reader.
unique style, fearless. saying someone is very wrong implies they are very right??!! very bizzare.....
once again you are misstating and misunderstanding--- SUBJECTIVE methods such as screen staring and guesing can not be TESTED. OBJECTIVE methods can be and are tested by OBJECTIVE means not by SUBJECTIVE means as stated in the post to which this writer responded. No amount of flowery off topic verbiage and/or unusual observations noted, can change this fact.
regards,
surf
"
Now you are entering into the ET spirit Surf.
Here we have a wonderful collective group of souls all with differing points of view, differing rational processes,
widely varying reading skills and abilities as so ablely demonstrated by your interpretation of my second paragraph and indeed your response.
Just imagine if you will, if all these wonderful ET souls opened broker accounts and actually traded.
No sim, no fantasy, just honest to God real live trading.
Can you imagine that?
Do you think that verbiage such as OBJECTIVE, SUBJECTIVE, TESTED and wildly entertaining statements and predictions would be quickly replaced by
"help.
I have a question.
Where am I going wrong.
My account is shrinking as we speak.
I need counseling, like fast.
etc etc .... the list is endless and the mood of ET would change overnight"
We all know that this will never happen and so it becomes somewhat of a rhetorical question.
People as just too diverse and that makes trading so interesting.
Just a passing thought Surf.
Screen time does verify objective methods but to understand this one must see it, study it, validate it, beat it up and test it to death. When one assumes WHAT they are commenting on is sometime it is not then their assumptions are incorrect.
Testing can occur on different levels. When testing subjective ideas, statistical and mathematical models are useful because one only needs to be close. The results of the statistical or mathematical tests won't be precise because anytime you test anything subjective your results will constantly be in a state of flux because your environment is a variable. The variable nature of subjective reasoning inside trading environments is why people relate trading to gambling. Because trading environments are constantly changing it is impossible to be subjective in one's trading decisions AND have a high percentage of win accuracy.
Do objective trading environments exist? Yes, but the trader must create them, the market doesn't create them on their own. this is why CVB (Constant Volume Bar) charts are useful. They eliminate the variable, "time", which is the biggest factor creating noise on our charts.
We further see the value of CVB charts in seeing trends as well. Trends ONLY EXIST on a single individual chart at a time. This is why so many people spout that trends do not exist. You could create 10 different fractal chart increments of the same market and see some of those charts in a Bull Trend and some in a Bear Trend. With this opposing nature of charting it is no wonder we have the Trend argument. When one verifies this on their own, they move that much closer to consistent profitability.
how do volume charts perform on bouncing off or trading through trend lines drawn from the major/minor higher highs/higher lows visa-versa
CVB (Constant Volume Bar) Charts clearly show the major/minor oscillation highs and lows because they act as a natural filter for the noise created by time.
I've attached an older eMini Crude Position Charts to give you an example. The bottom of the chart is an Ergodic (ERG). The red/blue line denotes that an oscillation has (distant hindsight) occurred at the color change. Where the color change took place, either equal to or above the top black line (Prime/major top [Resistance]) or below the bottom black line (Prime/major bottom [Support]) denotes the strength of that particular top or bottom. Whatever is NOT Prime IS minor.
The Histogram of the ERG is yellow & black. The yellow/black histogram denotes that an oscillation has (immediate hindsight) occurred at the color change. Where the color change took place, either equal to or above the top black line (Prime/major top [Resistance]) or below the bottom black line (Prime/major bottom [Support]) denotes the strength of that particular top or bottom. Whatever is NOT Prime IS minor. The Histogram, coordinated with the creation of the labels on the top portion of the chart, gives an individual the ability to trade in not only the Intermediate Strength & DIRECTION of a chart but also the Immediate Strength & DIRECTION of a chart.
ERG = Intermediate Direction & Strength
Histogram of ERG = Immediate Direction & Strength
The top portion of the chart is simply price depicted by 16807 contracts traded per bar. Time is not relevant on these charts. The price oscillation labels are generated but a computer program which gets them from the Prime Oscillations on the next fractally faster incremental chart. In this case they come from the 2401 CVB chart.
Trend lines are subjective, oscillations are objective.
This is how I use this. Others have modified it to meet their specific needs but keeping it simple is the key.
It is equally important to know when NOT to trade or to stand side than it is to know WHEN to trade.
Why?
Because once you know when not to trade you can be really really picky about the trades you DO take.
Increase consistent profitability and decrease weak losing trades, minimizing stress and increasing confidence.
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