CandleWhisperer

"Basically you will be watching out for a low volume up-bar, on a narrow spread." Tom Williams Master The Markets, pg. 32. At TradeGuider Systems, we define a "No demand" situation as a narrow spread bar, on low volume, that closes in the middle or low." Tom Williams Master The Markets, pg.153. Simply put, you are half wrong. PP defined No demand bars as they are indeed defined. What he did not mention was that all no demand bars are not created equally. They show up in different intensities and in more effective locations, i.e. with background weakness. Therefore, every up bar on volume less than the previous two bars is not a reason to short or expect lower prices. It is still a sign of immediate lack of professional interest. And thus acurrately defined as "No demand".

Remember: Strength appears on down bars and Weakness appears on up bars ideally. Hence the ideal test bar closes down. Next would be an equal close and the third option is up. So without looking at your chart again, the general answer is yes an up bar could be a test. However, like TG says, "pay more attention if the test is on a down bar". In a Shake out, however, the ideal would be a close on the highs with a close higher than the previous bar on high to ultra high volume.

That is why it might make more sense to use static levels that are plotted before the day starts. I have not read the book so I can't recommend it, but there is a book specifically about this type of method called "Price Action Trading". Some levels to think about could be: 1. MP levels (POC, VAH,VAL) 2. Yesterday's High (YH) 3. Yesterday's Low (YL) 4. Day Before Yesterday's High (DBYH) 5. Day Before Yesterday's Low (DBYL) 6. Key numbers (aka Floor pivots) 7. Actual pivot levels-places where the market did react/retrace/stall.

JJ: I managed to save a few screen shots from PP from other sites and this one. I have been studying his posts diligently. I have gone so far as to set up my charts exactly like his/hers. Are you saying he or she was not a real trader? I would hate to be trying to emulate a keyboard jockey.

I took this pic of Soultrader's chart from the es video on a previous page. I hope he does not mind. Just looking at the right edge of the chart, I am trying to figure out the vsa bars with the arrows. From left to right: 1. Up thrust. Buying bar that closes on its low with increasing volume. 2. No demand. Narrow range bar that closes up from prior bar with volume less than the previous two bars. 3. Transfer of ownership bar. Increased volume on an up bar that closes in the middle of its range with weakness in the background. For you Pros out there, am I close?

Sounds very interesting. I think this method, or price action trading, in general is the way to go. PP has shown a similar idea with 2 timeframes. 1 has various important "pivot" or "Key" levels and the other is used to make trades off of based on price/volume action at these levels.

Have you thought about opening a FOREX account? Almost all of them provide a charting package with free data for both real accounts and demo (simulated trading). If you believe that a chart is a chart, then you can use the currencies to test and build your strategies. Of course, if you ultimately want to scalp the e-mini for a tick or two, this would not be the best way to build a strategy to do that. But if you are a swing/position trader, it should do. I hate that I am going to say this, but if you're undercapitalized the Forex market is a great way to get started. The standard Euro contract is $10.00 a pip. Some brokers have mini contracts that are as little as $1.00 per pip. You could open an account for $200. All your data would be free, you charting free and you could still have a "real world" experience. Before I get my head bitten off, I know the number one reason new traders fail is undercapitalization. But I am not going to tell someone they have to have $50,000 to start to follow their dream. It's their dream, and where they are at presently is where they are at. Far be it from me, a dreamer myself, to stamp on another's dream. With that said, Some FOREX demo accounts never expire so you could test things out while you saved up money to trade for real.

First post. I will jump into the fire. Hope you are grading on a curve. 1. Up thrust : First bar on chart is up bar on heavy volume. Next bar is up, but on a narrow range with less volume. This is weakness. 2. Failed test : Close on the high of the bar, but volume is too heavy. This is weakness. 3. Trap up move : This could be called another Up thrust as well. 4. I'll have to pass on this one. :crap: 5. Climatic action: ultra high volume closing off the lows with the next bar down. 6. No supply. 7. Up thrust : Strength came into the market, but could only move the market sideways.