Market Logic

Hi guys,
I wanted to get into some of the subtlety that needs to go into determining whether or not to take a trade. The example above lets us look at a trade I considered taking but passed on and one that I took. Even though I have shown you many patterns that I look for, it takes far more than trading patterns that determines our success as a trader.

It is imperative that we gain an understanding of market behavior and that we make ongoing evaluations of what we believe is likely to occur. We won't always be right. But, over time, we become more and more adept at reading the market.

My entries vary a great deal. If we wait for more footprint confirmation, we often give up trade location. Sometimes, I indeed want to see more confirmation than on this trade. But, in this situation, I had clear reasons for being more aggressive.

I hope it helps,

MG

Counter Trend Trade from Wednesday's Volume POC

Hi Guys,
I had to work my day job and only had about 30 minutes to trade today. I got lucky as a nice opportunity appeared in my small window of time. I grabbed a quick 5 points.

I wanted to show you the three charts I was looking at and why I decided to take the trade. Sorry, I forgot to Snag It in real time. Once again, the clear views that these Market Delta charts offered made my decision easy.

See you tomorrow.

MG

IOAMT Daily Recap

Hi there guys,
Here is a link to Bill Duryea's IOAMT recap for today. It's only 8 minutes long but (as always) has thoughtful insights into the market.

It is essential for us as day traders to look at the longer term picture and economic factors effecting the market. Everything we do intra-day must be in the context of the previous day the and longer term price/volume structure. Bill does a great job of explaining this.

http://www.ioamt.com/media/videos/dailyrecaps/9879212/sforecap.html

I hope you enjoy it.

MG

Tomorrow's Probability Range

Hi guys,
Here is a very cool chart just posted by Bill Duryea of IOAMT. I thought that you would find this very useful. I love the simplicity and clarity of it. Thanks totally to Bill for this.

MG

Range Chart and Filtered Volume Breakdown

Hi there guys,
I hope you have been making good use of the new Range Chart with Volume Breakdown. I have gotten a lot of positive feedback on it. Here is an update on this chart set up. I have added a 2nd filtered Volume Breakdown Indicator set to only show orders of >199. I could have used > 25 or >99 or whatever. If you like the idea, experiment with it.

I borrowed this idea of superimposing a 2nd VB on the unfiltered VB from Bob Hoffman of Market Delta. So, much thanks to him. He posted an article entitled 'Delta, Delta, Delta" detailing how to set up this chart, in the MD blog on March 17th. http://blog.marketdelta.com/?paged=4

I have observed this addition to the chart for several days now and it has proven extremely useful. Here is an example of its use from today's trading.

Hope it helps,

MG

Singles Trade Followup

Hi guys,
I hope that you are having a great weekend. I wanted to show you a few more ideas (and additional clues) on that Singles trade from Friday. Whenever we take a trade, we want as much confirmation as possible to support our reasoning. This short at the Single had so much going for it. And, it worked really well.

The key is to have your charts set up to let you see these areas of confirmation really easily. Also, you really need to have the teachings of Auction Market Theory really be a part of you. If you haven't mastered the concepts in Mind Over Markets by Jim Dalton, I suggest you read it again and again.

After a winning or losing or missed trade, I snag a picture and note everything I saw as the trade unfolded. Perhaps even more importantly, I note the things that I missed. This process needs to be repeated over and over again. Eventually, you just begin to see more of the whole picture from a micro and mini perspective.

Market Delta's new 9.2 software has been an extraordinary revelation for. Almost daily, I find new ways to see the action better. I have more cool stuff I am checking out and will share with you after I have some time to establish it's value. My recommendation to you (if you are using MD) is to really learn what this software has to offer to you. I regularly visit the MD blog and read the commentary and watch the videos. They have a Community Forum at: http://www.seeinsidethechart.com/ I have learned a lot there. Check it out.

Hope all this helps,

MG

Range Chart and Volume Breakdown

Hi guys,
Here is a lesson on using a Range Chart along with a Volume Breakdown indicator. Trevor Harnett of Market Delta recently put out a nice video on VWAP Strategy (on his blog http://blog.marketdelta.com/) which goes over this subject. If you haven't seen it, check it out.

I have been using this type of chart set up (along with a 6 tick Reversal chart for a good while now. I run them side by side. They each give a different view of the market action. The range chart prints bars of the same size which has its advantages. It is especially useful with the addition of the VB indicator set to Delta.

A really nice trade opportunity showed up today in which this chart set up really shined. I have annotated the chart in detail to help you see what I was looking at.

This kind of situation is not rare. We also a a very nice sense of deceleration near the end of the day when the market came down to developing value area low. I suggest you set up your own chart like this and check it out. Notice what you see.

If you have any questions, feel free to ask.

Hope it helps,

MG