Soultrader

Great stuff Walterw. Thank you very much for this. It should be interesting to see the color divergences at key pivots. The rest should be considered noise.

Leroy Rushing from Trading Everyday will be hosting his second online chat seminar on Thursday, Feb. 15th, 2007 from 11:00am EST. Please join us in the chat room to attend this seminar. Leroy Rushing is a former Executive Risk Manager for several Fortune 500 financial institutions and is currently a full-time day trader and trading mentor for Trading Everyday. A transcript will be saved for those who can not attend. Seats are limited so make sure to come in a little early. Thanks

Freddie, Tradestation waves the platform fee if you place more than 10 trades a month with them. So you will be only paying for exchange fees. I am not sure what your options are there in Canada but you should try to get a platform that allows bracket orders, OSO orders like Ninjatrader or Infinity AT.

What do you mean by bid/ask quote? The green colors tell me the contract was bought at the ask while the red indicates contracts being sold at the bid.

A good way to determine market direction is to divide the trading session into multiple segments. In his book Mind Over Markets, Dalton stated that one of the most important questions a trader can ask himself is "What is the market trying to do now?" Market internal tools are helpful in determining the overall health of the market. However, there are times when internals are out of sync with price and amongst each other. The only reliable information is price. This study consists of 4 segments of a 233 tick chart of the YM on Feb. 9, 2007. I have divided the chart up into 4 parts to explain market information in pieces. The two red horizontal lines represent the value high and value low pivot. Let's take a look at segment 1. Segment 1 shows the opening hour from 9:30am to 10:30am EST. The YM takes off to rally 25 points at the open and goes to test the psychological level of 12700. The first attempt fails to break the critical 12700.. notice the 2-3 tick violation of the 00 level and back down. The market then pulls back to rally for the second attempt to test the highs of 12700. Notice how it comes up short and fails to test the initial high. This is indicated by the second arrow. This is a clear warning signal as price makes a lower high and lower low. Now let's take a look at segment 2. Although price is still accepted above value, segment 1 produced a warning signal for bulls. In segment 2, we see a third and fourth rally attempt to test the highs. Both attempts fail to reach the initial high and forms a double top. This is the 2nd and 3rd warning signal that price can not move upwards towards the 12700 level. Let's take a look at segment 3. Segment 3 shows price break of value low pivot and a move into value. Price breaks into value and then retraces back to the value high pivot indicated by the yellow arrow. When there is price rejection above/below value and a push back into it, there is a high chance it will go on to test the other value pivot. So in this case, since price broke into value there is a good chance price will test the value low pivot. Segment 3 shows this as price tries to find support at VAL. Let's take a look at Segment 4. Segment 4 shows the breakdown of value low pivot and then a nice declining downtrend. We clearly saw the warning signals from Segment 1 & 2. Segment 3 was a confirmation of the warning signals produced from Segment 1 & 2. The YM eventually finds support. Where? Smack at the VPOC produced from January 31st, 2007. Interesting stuff? A trader who was able to process this information from Segment 1 and 2 could of easily grabbed a nice short when price fell into value and retraced back to value high pivot. Market profile traders would probably suggest that since the TPO could not take over the previous TPO's this was bearish. But this can clearly be seen just by looking at price action. Now let's take a look at the overall chart.

Hi Robert, Would you like to post your .ELD file in the custom indicators forum? This way it makes it easier for members to find it. Thank you PS: I went ahead and deleted the previous .ELD files

Thank you pivotprofiler. I actually learn alot myself just posting videos and receiving feedback on it. My intent here is to share and learn the highest quality of trading education. I appreciate everyones contribution here... and I hope traders can find something insightful that can help them improve as traders. The VPOC is fairly interesting. I recently learned about this and has been a powerful level of support and resistance and has certainly caught my attention into further study.

I personally use the S&P premium to trade the YM. Never really used the Russell premium for the ER. First, I am unable to obtain data for buy/sell program levels for the ER premium. If you know where this data might be available, please let me know.

Video explaining breakout failures/price rejection. Particulary interesting video of the ER since 808 was a ultra key price level the entire world was watching. CLICK HERE TO VIEW VIDEO Charts created by Tradestation Presented by Traders Laboratory

You can add market profile on esignal for a small fee. I use to use esignal for my market profile charts.

One of the most important things for a trader is to recognize a trend from a rangebound market early in the trading day. In my opinion a trader needs to identify this within the first 30 minutes of trading. (15 minutes would be great) There are numerous ways to watch for levels of participation in the markets. For those of you who have pit noise, this helps alot. You can clearly hear the noise level in the pit and usually the speaker will point out if the pit is full or not. Volume is also a good sign to watch for to determine whether we are likely to see trend or chop. You should always know the average volume for the underlying contract you trade during the initial 5 mintues. Now, in a strong trend... the opening price can act as the dead low or high for the day. When price rotates above and below the opening price, we are likely to see a balanced and rangebound market. For tape readers, the obvious can be seen in the flow of the tape. Is the tape stuck in traffic? Or is it flowing smoothly showing interest. The market needs confidence in either way (bull vs bear) for it to trend intraday. The tape clearly shows how traders are hesitant and undecided. Another method I use is by comparing time on a 233 tick chart. Usually, the first initial candlestick bar will complete in 1 minute. When it exceeds over 2 minutes, there is a clear lack of market participation. Lets take a look at market action from Feb. 5th, 2007. Below is a chart of the YM. Notice the complete rangbound market and the narrow range of approx 50 points. Not a great market to be trading wouldnt you say? Now, lets take a look at the first 233 tick bar. [media=380,380,false]http://www.traderslaboratory.com/Videos/ymfirstbar.avi[/media] Notice how the first 233 tick bar takes 4 minutes to complete. The average time is usually 1-2 minutes. There is clearly a lack of commitment by traders. Its hard to stay away when you have the trading juice pumped inside you. But on days like Feb. 5th, its a great idea to pack your stuff and take a hike.

Hi kingking, Welcome to Traders Laboratory. Its good to have you on board king. We've spent some time in the chat room recently. Will look forward to hearing and reading about your insights on the emini's. Happy trading. James

Psychological levels are simply 00 levels or whole numbers.

Ok my mistake. Let's turn this into a volume analysis thread for now. Blu-Ray pointed it out to me earlier and I actually prefer it. So basically we are seeing buyers vs sellers from Walters and Blu-Ray's indicator? Note: I made some changes to my initial post and the title of the thread.

I just upgraded my server to a new one so the lag should disappear. Please let me know if you guys still experience a slow loading time. Thanks

Thank you very much for this ImXotep. Could you explain a litttle bit on how this indicator works and what we should be looking for? Thank you

Very nice. Thank you very much for looking into this. James

Good point there notouch. How about the Volume Up/Down indicator by Blu-Ray? From my understanding it will plot buy volume vs sell volume. My main focus is to better understand fear vs greed. Yes volume alone will show this. However, let's say a tall red candlestick occurs on nice volume. A simple volume histogram would indicate panic and alot of selling. However, the volume up/down or TICK delta indicator would show the ratio of sellers vs buyers. This can be useful in getting in 1-2 candlesticks earlier before the crowd. Although volume spikes can indicate a reversal, price can still decline. (price often reverses at a top but I have seen price decline further during a panic) Understanding the buying vs selling at these particular bars can be useful in my opinion.

Hi Blu-Ray, I have a request regarding the indicator. Is it possible to plot the greater of the two on top? For example, more selling volume would place the red on top of the green and vice versa. Thanks

Ant wrote the Market Delta Indicator for Tradestation. It's posted in the indicator forum free.

Its the drawing tool from Camtasia Torero. If you are using it, go to Tools and setup the hotkeys for the drawing. It'll let you draw while recording live.

I want to dedicate this thread to a study of Volume Delta. Delta is still a relatively new study to me so please add your input freely. Quick Intro to Volume Indicators Below is a list of TS indicators created by the members of the forum: 1. Volume Delta created by Walterw 2. Volume Delta Oscillator created by Walterw 3. Up/Down Volume Indicator created by Blu-Ray 4. Market Delta Footprint created by Ant 5. Bid-Ask Tape Indicator created by Insideday The indicators above show an interesting way of viewing bid vs ask per price bar. Instead of just a simple volume histogram, it shows whether the buyers or sellers are in control and can be very useful in analyzing supply vs demand as price approaches a key pivot or support and resistance level. I am currently using the Volume Delta created by Walterw, so I will be referring to it for my charts. What I want to accomplish is to design new strategies based on delta. Perhaps combining other tools to help decide turning points in the market and to create filter/rules for each delta based setup. I will be looking forward to various inputs from traders. My setups and strategies are still in the beta phase where I am still testing out different methods. But I would like to go over one observation I found interesting. It is a combination of the TTM Heikin-Ashi Indicator and the Volume Delta. I am interested in price behavior as it reaches a key pivot such as daily pivots, previous day low/high, 50% fib retracement, VAL, VAH, and POC. Let's take a look at the first example. The chart below uses a 50-61.8% fibonacci retracement clustered up with a daily pivot (PP). In combination with the fibs and PP, I am interested in using delta to further help me enter a position. The example shows a color divergence between the TTM Heikin-Ashi and Volume Delta. Notice the blue TTM vs a red on top Volume Delta. This shows price advancement but with seller dominance. The second example below from Jan. 31st, 2007 requires further analysis. Its a fairly interesting chart with a combination of delta and volume analysis. Notice the first group of arrows. This shows the first half hour of choppy trading using the Value high pivot as support. Notice the several TTM and Volume Delta color divergence. Next, notice the increase in volume with the uptrend showing confirmation. The pullback occurs on less volume. Also notice the TTM and Volume Delta color divergence as price pulls back. Then an increase in volume again for a continuation of the rally. Very interesting examples of Volume Delta in action. I understand that some of you use Oscillators for Delta to look for divergences. Please add your input on this. My aim here is to really dig deeper into Delta and how we can all design trading setups that will put the odds in our favor. Thanks

Yea... the best thing about amatuers is that I rarely have to do anything. They self destruct on their own. But here's a tip.. you cant bluff an amateur but you can bluff a pro. Amatuers play so loose that they will call anything. Also like you mentioned they never understand the risk:reward element in life. They dont play to win... they only play to prove who has the bigger balls. 99% of the time they go home broke.

Welcome to Traders Laboratory Ashmat. Thank you for the compliments. We try to maintain the highest quality in terms of content and respect towards one another. If I see a user bashing another member without anything useful to contribute, I will usually ban them immediately. They can take their attitude somewhere else. The members here are great with everyone willing to help one another improve as a better trader no matter their experience level. Glad to have you here Ashmat and I'll see you in the forums.

Sounds good walterw. We should open a new thread dedicated to the TICK Delta and perhaps traders can put in their input on devising strategies for this. Im trying to combine some market internal tools as well. Thanks