I've been very busy today so just whipped up this chart quickly. I do this kind of thing for my (and usually in more detail) every night.BTW, note the volume on the final drive up. The orange line denotes 180 average volume at the same time frame. The blue line is the 30 day volume high for the period. Volume was above the average and (in 2 periods) above the high volume. This was a heads up that the up move had legs.
Hope it helps,
MG
when you see a retracement to initiated activity, i assume that you do not trade off the 30-minute chart, but instead wait for the right entry (if one occurs), off the 5-tick reversal, is that right?
ReplyDeleteAJS,
ReplyDeleteYou assume correctly. However, there are definitely times when I will just hop in on a retrace to an area of initiated activity if other things are there also. Today, I took a long trade on just such a retrace when there was developing value also in the same vicinity.
I didn't wait for the rev chart confirmation, I just jumped in (with a limit order)and took my chances. After entry, I then monitor the trade on the rev chart. The more evidence I have to support a trade with multiple supportive confluence(other key areas, market internals, etc.) the more likely I will just jump in. That's not to say that this is the best way. It is estimated that 70% of the time the market will give you a chance to enter with strong confirmation. That leaves 30% of the time the market will just take off and 'bye-bye'.
So, if a trade looks really good to me a may jump in aggressively. However, in general, I prefer to wait for delta confirmation.
Hope it helps,
MG
Hi MG
ReplyDeleteEnjoy your postings. The 25 area you highlighted held well today:) What is it about low volume areas that lends support?
Thanks
Tom
HI
ReplyDeleteHow did you get those dots onto the prices where significant volume took place?
Dear Nocved,
ReplyDeleteThat 25 area was what is known in Market profile terms as a Single Print. The market launched from there. Big buyers broke out from there. There was no two sided trading - just one directional movement. And it covered a large area from 25.25 to 30.75 before we began to see any rotation at all.
When the market returns to that area, there is a probability that that area will be defended by those big buyers. I liked this one a lot because there was also a volume area of initiated buying right below it that I could use for this for additional support.
I hope this clarifies.
MG
Mprofile,
ReplyDeleteThose dots are a new indicator in MD 9.2 known as Volume Price Statistics. The blue is Maximum buy volume price, the red maximum sell volume price.
You have to choose Line,Connected and Style: Dot. Also, you need to choose to place the indicator in the ES price window rather than a new pane.
MG
Sometimes the dots overlaps each other, eg buy and sell volume , result only 1 dot with one color. To seperatate this for better viewing you can make the first dot eg Buy Volume, bigger eg 5-6 pixels and the other 2 pixel. Result is a big dot with a small dot inside.
ReplyDeleteThis is a great Blog, i have a lot learned since this Blog is online!!!
Thanks for all!!
Bert,
ReplyDeleteThanks for the comment. Yes, that solution works great.
MG