Bearbull

Check out the thread on Reversal or Retracement. Learning to read Price action via movement of price and activity via volume should provide the necessary clues, however it takes screentime and skill to recognise this in realtime trading;)

All depends on the quality of the content of the blog just as the quantity of posts on these threads mean nothing if he or she is merely engaged in totally non-productive, controversial exchanges. In any case the final option is in our hands, go back to the charts and check out any methodology explained in any blog or thread and verify for yourself, it if does not jive, fine, move on to the next, there is no need to harbor any grudge against the previous one which did not work for you;)

Precisely, you have found after experimentation with various tools of trading an edge/setup/strategy which allows you trade profitably on a consistent basis, but that does not in anyway negate other tools of the trade. I know quite a few traders who make a most envious living with a combination of pivot levels, moving averages and 3-4 other momentum indicators (RSI etc), despite the fact that all these maths based indicators have a fundamental logical flaw i.e Price (variable A) is sliced and diced to create an indicator which in turn is employed to predict Price (Variable A). However in the hands of a skilled trader, there is no problem.

There is nothing wrong or right with any approach, MA, RSI divergence, CCI, Pitchfork, MP, Wyckoff, Gann, Elliot, Fibonacci etc, these are all tools of the trade, they do not work by themselves, it is up to the skill of the trader to create an edge and make them work. If somebody is consistently successful in trading by employing Planck's or Hubble constants, Avogadro's number, frequency of tides , harmonic vibrations from the depths of the Universe, who are we to say he or she is wrong:) All the calculated pivots numbers for example do not have any solid logic behind them, however if enough folks trade by them , then obviously prices will react at those levels, same goes with Fib. levels. Carolyn Boroden has made a career out of it. Infact fib. numbers have taken up cosmic significance:) As W. Gallacher pointed out " Surely the medieval mathematician would be astounded at his impact on twentieth century commodity man. His mathematical series was constructed from observations on the incestuous copulation patterns of rabbits. Let's see, you start with a male and a female, then you take the first female offspring and you........well, better not get into it";)

Once again and for the final time, when demand is greater than supply, price will find support and rise and vice versa, I have the charts and from the OBSERVED PRICE ACTION, I plot S/R and Trend, simple. I have no problems with any other approach of other traders. Wyckoff and Technical Analysis are not different., infact he was a Master Technician if you care to study his original course. He read charts based on mechanical considerations (Trendlines, S/R) and technical considerations (Price/Vol) Whether all this is a byproduct of the copulation habits of rabbits via Fib. Numbers or forecasting ability of Gannophiles based on astrology or the Butterfly Effect of Chaos Theory is irrelevant to trading in realtime. If anybody has the full grasp what Gann was apparently privy to - the Divine Law governing the Universe - the Law of Vibrations, first explain it with clarity, and then elucidate and enlighten us via examples of some realtime trades. BTW get hold of “Winner Takes All” by W.R. Gallacher, and carefully read Chapter 2 , “The Circus” blows away the myth surrounding Gann. and all the maths jargon. He obviously was not conversant with the concept of Uncertainty and human behaviour, market manipulation and the shenanigans of the specialists: Check this out: http://w3.tribcsp.com/~fredj/ney.html As for his references to divine laws in the realm of physics, doubt if he understood Heisenberg’s Uncertainty Principle. Hell, even Einstein had problems with that (the famous Einstein-Bohr Debate- in which he stated “ God does not throw dice”)- Guess what, Einstein was proved wrong. Also Here’s Dr. Alex Elder, writing in “Trading for a Living” :Quote: “ Various opportunists sell Gann Courses and Gann software, they claim that Gann was one of the best traders who ever lived and made a fortune of over $50million. I interviewed his son, an analyst for a Boston Bank, he told me that his famous father could not support his family by trading but earned his living by writing and selling instructional courses.” So if you want to make a small fortune, first convince the public that you amassed a large fortune trading, and then have the public pay through the nose for your secret ( also consult professional trader G.H at TG & Syndicate members). The second and more common way to wind up with a small fortune is to start out with a large fortune

The key phrase here is "PRICE ACTION OBSERVED", anybody can carry out this exercise and prove it for themselves, whether it works or not or whether it is technical analysis or Wyckoff or if a chimp, gorilla, baboon working from an Island agrees or not is totally irrelevant. Observe what the continuous flow of price is exhibiting, construct strategy and tactics, establish an edge with your setup, with rules, focus, anticipate, recognise, and execute. HOW SIMPLE CAN IT GET If folks wish to carry out all this within a framework of Andrew Pitchfork, or Market Profile or movement of the planets, I have no problems whatsoever, whatever works on a consistent basis:)

Nice example, here is the chart with normal Vol histogram, illustrating the same setup, upward thrust accompanied with high vol indicating buying pressure, and pullback on low vol. signifying lack of offerings, or supply Just another way of looking , Do you find that there are significant differences in the way you use vol and the one depicted in the attached.

The job of the Trendlines is to indicate the direction & angle of the Trend, vast majority of the time when they appear to offer support or resistance is due to the fact that price found support or resistance at that price level(to the left) as depicted in the attached (red lines), these are from the price action observed in the past few days(support) and this morning(resistance) Think it would be far more productive to drop the ego , avoid controversy and engage in constructive dialogues and exchange of trading ideas, otherwise it would merely be a repeat of what went on in VSA threads a few months back:crap:

Wyckoff employed Trendlines but as Db has pointed out a number of times there is great deal of confusion regarding support/resistance, demand/supply and trendlines. Anyway a colleague sent some links , lots of info. on support, resistance, price, vol etc.: http://www.trade2win.com/boards/price-volume/11104-price-volume-support-resistance-demand-supply.html http://www.trade2win.com/boards/price-volume/29082-price-volume-support-resistance-demand-supply-abridged.html

Thanks for the link OAC , yes I used to read NQoos website some years back now, he certainly is an altruistic guy, making so much invaluable info. available for general trading public, believe his favourite setups are with the application of Andrew Pitchforks. Also know about Joe Ross, wrote Trading by the Minute, You could start a thread on his methodology, perhaps he could come in and post comments.

Looks like you are employing a combination of approaches, the clustering of fib levels (carolyn Boroden, the fibqueen) , CCI ZLR etc from Woodie, Linda Raschke uses ADX readings , momentum moves & shallow retracements, plus walterw Well if it is working for you consistently, then that is great, next time you take a trade based on this combination, would appreciate if you could post it here.

Most traders plot S/R levels and construct strategies/tactics to trade from those levels. You obviously have a unique style of trading/flying in the open spaces , very intriguing, perhaps you could illustrate a realtime trade with your methodology. I am sure it would be of immense interest to many who are thinking of soaring with the eagles.

Great Post Liggerpig, very much following in the footsteps of Wyckoff determining buying and selling pressure at relevant S/R levels and anticipating Way to Go:cool:

Infact there is a lot of invaluable info. on S/R, check out the Wyckoff forum http://www.traderslaboratory.com/forums/f131/support-and-resistance-3878.html and the Dbphoenix blog.

Try Infinity AT platform, they also offer a charting package.

Absolutely, it is all about finding a strategy that suits your personality and then applying with discipline, I should have emphasized "too many indicators", having seen some of the charts posted on Woodie's website, nothing wrong with filtering out trades with use of stochastics, RSI etc and taking those with high probability outcome.

Spot on Jwhite, price movement is independent of bar intervals and reading price action (buying/selling pressure) involves lots of effort/screentime, however in this age of instant gratification who wants that;) However price action seldom lie, I would say relevant support/resistance zones as primary , then price action at these levels, as Dbphoenix has pointed out, if your strategy requires you watch too much (indicators etc), you need to re-evaluate the strategy. The choice is up to the individual.

Cowseathay, some great insight here, wish I had this kind of assistance 10yrs back, you certainly won't find it in weekend seminars or from trading gurus, this is pure wyckoff and is freely given. However if you are hell bent on getting entangled with fancy bar analysis, then so be it, but the way forward is embodied in the above couple of posts by Db. As for it being hard to trade in realtime, well how long did it take you before you started driving on highways/motorways;)

You had all the signs of reversal to the upside around 10-11 above a support area of 156.72, infact a higher low, ( climatic sell off followed by sharp reversal and then a test on low vol), had this test been on high vol i.e down bars with increasing vol, then that would negate the reversal signal and it would expect the support to fail, in which case you would continue to monitor and look for further signs of reversal via price-vol relationship. I would strongly urge you to study Dbphoenix threads in Wyckoff forum and his blog, there is a ton of invaluable info. there, well worth the slog:)

You have already drawn trendlines on the 1min chart, if you were long, your exit would be either the break of TL or break of previous swing low, refer to Dbphoenix forum and blog for further info. on how to apply Wyckoff principles in this regard.

FW, Traders make up the market, and those who trade on longer time frame obviously watch and monitor these levels. If you have learnt to identify these levels and observe price reactions at these prices, then surely that should enhance your trading, as to how long the influence will last into the future, well that I doubt if anybody can provide a definitive answer.

Mind is thoughts in motion, hence cannot be emptied of thoughts, however it can be made steady with a single thought. Even if say one succeeds in emptying the mind, there is still the thought of being aware of the blankness. Initially ofcourse this is preceded by the thought of the effort , "I am going to empty the mind" then "I am now aware of having emptied the mind". Real peace and calmness arises from focussing on the awareness, the silent witness , you the Real conciousness who is attempting to empty the mind and is aware of all that effort. Get hold of "Enlightenment - The Path Through The Jungle" by Dennis Waite

What is Tape Reading? This question may be best answered by first deciding what it is not. Tape Reading is not merely looking at the tape to determine how prices are running. It is not reading the news and then buying or selling "if the stock acts right." It is not trading on tips, opinions, or information. It is not buying "because they look strong," or selling "because they look weak." It is not trading on chart indications or by other mechanical methods. It is not "buying on dips and selling on peaks." Nor is it any of the hundred other foolish things practiced by the millions of people without method, planning or strategy. It seems to us, based on our experience, that Tape Reading is the defined science of determining from the tape the immediate trend of prices. It is a method of forecasting, from what appears on the tape now in the moment, what is likely to appear in the immediate future. Its object is to determine whether stocks are being accumulated or distributed, marked up or down, or whether they are being neglected by the large investors. The Tape Reader aims to make deductions from each succeeding transaction - every shift of the market kaleidoscope, to grasp a new situation, force it, lightning-like, through the weighing machine of the mind, and to reach a decision which can be acted upon with coolness and precision. It is gauging the momentary supply and demand in particular stocks and in the whole market, comparing the forces behind each and their relationship, each to the other and to all. A trader is like the manager of a department store; into his office are submitted hundreds of reports of sales made by the various departments. He notes the general trend of business - whether demand is heavy or light throughout the store, but lends special attention to the products in which demand is abnormally strong or weak. When he finds it difficult to keep his shelves full in a certain department or of a certain product, he instructs his buyers accordingly, and they increase their buying orders for that product; when certain products do not move he knows there is little demand (or a market) for them, therefore, he lowers his prices (seeking a market) to induce more purchases by his customers. The Tape Reader, from his perch at the ticker, enjoys a bird's eye view of the whole field. When serious weakness develops in any quarter, he is quick to note the changes taking place, weigh them and act accordingly. Another advantage in favour of the Tape Reader: The tape tells the news minutes, hours and days before the newspapers, and before it can become current gossip. Everything from a foreign war to the elimination of a dividend; from a Supreme Court decision to the ravages of the boll-weevil is reflected primarily upon the tape. The insider who knows a dividend is to be jumped from 6 per cent to 10 per cent shows his hand on the tape when he starts to accumulate the stock, and the investor with 100 shares to sell makes his fractional impress upon its market price. The market is like a slowly revolving wheel. Whether the wheel will continue to revolve in the same direction, stand still or reverse depends entirely upon the forces which come in contact with its hub and tread. Even when the contact is broken, and nothing remains to affect its course, the wheel retains a certain impulse from the most recent dominating force, and revolves until it comes to a standstill or is subjected to other influences. Richard D Wyckoff

Quote: Successful tape reading is a study of force; it requires ability to judge which side has the greatest pulling power and one must have the courage to go with that side. There are critical points which occur in each swing, just as in the life of a business or of an individual. At these junctures it seems as though a feather's weight on either side would determine the immediate critical trend. Any one who can spot these points has much to win and little to lose, for he can always play with a stop placed close behind the turning point or "point of resistance". . This study of ‘responses’ to stimulation or outside influences on stocks is one of the most valuable in the Tape Reader's education. It is an almost unerring guide to the technical position of the market. Of course, all responses are not so clearly defined. It is a matter of indifference to the Tape Reader as to who or what produces these tests, or critical periods. They constantly appear and disappear; he must make his diagnosis and act accordingly. If a stock is being manipulated higher, the movement will seldom be continued unless other stocks follow and support the advance. Barring certain specific developments affecting a stock, the other issues should be watched to see whether large operators are unloading on the strong spots. Should a stock fail to break on bad news, it means that insiders have anticipated the decline and stand ready to buy.

Once you would do well do study Wyckoff first and then move into VSA, check out Dbphoenix forum on Wyckoff , Here are some pearls of wisdom from there: "From a practical standpoint, it really doesn't matter who is moving price or why they're doing it. What matters is that price is moving. The key to profiting from that movement has less to do with how and why and who than with being attuned to the relative strengths of the buying and selling waves as they relate to previous buying and selling waves, i.e., support and resistance. Allowing oneself to become enmeshed in the who and the why does nothing but add another layer of unnecessary and irrelevant complexity. Volume has to do with trading activity. Supply and demand have to do with price movement (unless price doesn't move at all, in which case supply and demand are balanced. Price can move substantially on practically no "volume" at all. It can also sit there buffing its nails while tons of trading activity is going on in the background."