Wednesday, March 4, 2009

Looking at the Big Boys

Hi there guys,
Wanted to give you something a little different today. I have been looking at the 100+ traders for a while and am still determining how to best use this data in my trading. Here's how I used that info today

Hope it helps,



  1. Hi MG, great blog yu have here, I've been following it for a while. i recently got MD & the bid/ask 5 tick reversal chart. being new to this type of look i have a few questions i hope yu can answer or give me a heads up on.

    today thur the 5th, at 10:00 to say 10:15 AM CST a low started to be put in at the night mkt low at 691.50 to 691.75 price was sold down to a possible support area and each retest (3 touches total) on lighter selling and the high volume on the bottom 2-3 ticks indicating passive buyers were absorbing the sellers hitting the bid... then the low gave way with a ferocious 5 pt break. what do yu look at for a heads-up on the failure? or hints the low might break?
    thx JT

  2. TT,
    Really great question for which I don't really have a really great answer. But, I'll try. This was a tough one. The way the footprint set up, it sure looked like the market could likely reverse. Everything you observed is true.

    For me, while the overnight low could certainly have been a reversal area, I was certainly looking for the market to test the 88.50, so I would have likely waited.

    The only really bearish things I can see are that it kept making lower highs. They couldn't push it up at all. The price was totally contained by the 24hour VWAP meaning they couldn't break the mean. Also, on the two bars just before the breakdown the strong buying dried up and we had 2 bars of negative delta.

    You know, the MD footprints only give you a likelihood of what could happen. It gives you an edge and if you only trade key levels, you can know quickly when you are wrong.

    This insight I offer was after the fact. This is why I do charts every day and really look at what I could have seen/recognized in real time - but didn't. You need to continually make your own observations. I am just learning like you are. My blog posts help me learn.

    Hope it helps,


  3. Thanks MG for taking the time and yur efforts to shine a little light on the sequence of events... I can't say enough about the playback feature available today on charting software, what a gift to traders.... talk about shortening the learning curve!!!

    i receive bill's mkt recap over at ioamt and he also got long in that area, yet held his longs and had a nightmare to trade out of & he did, amazingly...

    I'm sure yu get the recap as well but wanted to send yu the link if not for yur self?? others traders should be aware of how he looks/trades the mkt.

    about 22min into the recap is his discussion on the low around 10-10:15ish.

    Bill's commets were very cut and dry, "if the seller returns yur inference is incorrect & take the stop/exit" & yur remark "the MD footprints only give you a likelihood of what could happen".

    both yur comments helped me solve how i was going to handle the situation in the future... great help from veterns....
    enjoy all, thx again MG, JT

  4. TT,
    Sorry not to respond sooner. Your comment got through the cracks. Thanks so much for the feedback. I have the video you posted loaded and ready to view.