Soultrader

hahahahaha my eyes are bloodshot!

Very nice. Thanks walter.

Sounds like fun wsam29. Actually its the opposite way for me. I apply my poker skills into my trading. I'll give you a few tricks for poker. Nothing is free... so if you are not sure what youre opponent has, place a small bet. This is what I call an information bet. This way, if he calls or raises you have an idea what he's holding. Other than that, if you are a discplined trader you should have no trouble at all cleaning up . Poker is a game of manipulation, discipline, patience, and psychology. The part you mentioned about mentally keeping track is a must. Each player has a distinct human behavior. The typical amatuer has too may tells...why did he take longer to bet? Why is he so quite all of a sudden? Why is he playing like he just wants to take down the pot on the flop.. weakness? etc... In a typical house game with a few players, I can pretty much recall 90% of the hands that were played at the end of the night. Figure out what hands your opponent likes and dislikes. It will increase your probability in your decision making. The best skill in poker though... is intuition. Now that takes years to develop. Have fun and good luck

Thanks for this nicknextmove.

Here's an indicator I requested and was created by Insideday. Its a simple indicator that calculates the number of contracts at the Ask minus Bid off the tape. Basically, I'm interested in seeing if there are more lots at the ask vs the bid at key price levels such as pivots. Im also interested in seeing the difference during a tight range in anticipation of a breakout. I personally plot this on a TICK chart and the indicator as a histogram. See attachment for screenshots. Created by Insideday. Please do not redistribute without the permission of Insideday. BIDASKINDICATOR.ELD

I think the only calculations that are different is the R3 and S3 pivots? If you prefer a different formula for the indicator, you can edit the EL coding... its fairly easy. I think I just shortened the formula by using range where the classic version usually states (high-low) which is the same thing as range.

Been a while since I posted up any analysis. Thought I would do one for the YM. Let's take a look at the daily chart first: Now, the blue moving average on the chart is the 50 period moving average. The YM is currently using it as support around the 12480 mark. An interesting thing to watch is the price movement from Dec to now. Throughout the incredible uptrend the YM moved at a pretty rapid pace. From mid July, 2006 the YM took off to rally approx 1500 points. However from Dec to now, the move has been somewhat weak and slow. We have been stuck in a approx 400 point range for 2 months with 3 test of the 12670 level. Also notice the entire uptrend occured on a declining MACD. My current long term bias is not bullish. We could see this thing rally again, create a nice volume spike and reverse. Let's take a look at some levels to watch for tomorrow. Below is a Market Profile chart: Now I want to point out a few key levels from the MP chart. First, the red line I plotted at 12578 - 12580. This is a cluser from 1/26, 1/29 and 1/30 high. If price breaks this level, we should lift nicely. The 12600 level does get me a little worried but the YM seems to be not respecting it as it did with the 12500 level. So Im looking for a nice run towards at least the 12625 - 12630 mark. Another interesting level is the VAH at 12555 ish. Another interesting cluser level: 1/29 & 1/30 VAH. The other interesting level is yesterdays low at 12510ish. Also a cluster zone with the lows from 1/29. So 4 levels: 12510, 12555, 12575 - 12580, and 12625 will be my main trading levels for 1/31/07. If we take a look at a 233 Tick chart, you will see the importance of these levels. The chart below is a 24 hour chart as of 4:27am Eastern. Notice the overnight resitance around 12570 which is in line with the high from 1/30/07. Also notice the nice cluster at 12555 - 12550 of the VAH, weekly pivot, and daily pivot. This is going to be an ultra key level to watch. The value range is 28 points making it very narrow. If the markets break out of value, the professionals like to test below and above it. We have the previous days high appro 15 points above VAH and the previous day low approx 15 pts below VAL. Becareful of any longs or shorts placed on the break of value. I may observe the morning to see strength or weakness. Then determine which way the markets want to go. Best of trading.

Yea.. Ant already made that for me. Check "soultrader's pivots" in the indicator forum.

I think there are several. Ant for example made the Market Profile Indicator for Tradestation. Insideday just made this Bid/Ask indicator and a few others like Nasdaq is good with EL also.

Sure I would like to take a look. Insideday made an indicator posted on page 1 of this thread which is pretty much what I wanted. I'll post a snapshot of that tomorrow after the close since it only works in real time. Thanks

I slap roaches with it. And sometimes calve raises.

hahaha... been there myself. Even bought a book called The Encyclopedia Of Technical Market Indicators my first year in trading. lol Oh man.. how useless it has turned out to be. I use market internals, market profile, and tape. But on my price chart, I have nothing. Just simple pivot and MP levels

I'll try to add my input on this. I started off initially as a pivot point based trader. Ive added Market profile, tape, and market internals ever since so I am pretty comfortable using pivots into my trading style/methodology. Here's the thing. Pivot points are excellent for entries. Im comfortable with the risk and entry can be made ahead of the crowd. Stops are usually placed 10 pts on the YM from my entry. However, I find that one needs to truly understand market internals to trade pivots with a higher probability of winning. Internals tell alot if the pivot is going to hold or break. 3 things I watch for: market internals, volume, and tape. I particulary like when price violates a pivot by a few ticks, price rejection on tape, and then back below/above the pivot. In my opinion, its alot easier to trade off pivots when combining another analysis such as; double top at a pivot on lower volume or price & TICK divergence at a pivot. Also pivots are not exact science, so price can fall short of reaching a pivot and reverse. You can look to use midpoints to partial out of your trades. I tend to exit a few ticks before price reaches the next line of pivot. "Dont be a dick for a tick". Trying to squeeze that 1-3 tick is alot more costly. :p On Jan. 30, 2007 the YM pretty much wiggled inside value the majority of the time indicating a balanced and choppy market. My best advice is for you to spot this out within the first 30minutes and just stay away from it. I got chopped out with 2 pivot plays on the ER2 that day. A couple of steps I use to identify chop is by reading the tape early at the open and the 30minute range. If volume is low in the first 15-30min... you can pretty much expect a dull market. Im no scalper so most of the time I'll try my best to stay away.

Paul has a cat that can predict market turns. I tried to buy it off him but wouldnt sell. Anyways, Tin what are youre thoughts on the ER2 and how MP plays into it? As you know I've been married to the YM for some time. Does ER2 respect the MP levels and concept as the YM does? On the YM, whenever the PP is in the middle of the value range, it tends to stop price dead in in its track. Have you noticed anything like this for the ER2? Thanks

Be a good market internal reader and you'll be miles ahead of the crowd. Good luck Robert.

Yep.. great video Tingull. Thank you.

WOW! Works great insideday. Thank you very much for this. I almost had a EL specialist get this done for me. Do you mind if I go ahead and post this in the custom indicator forum? Thank you

Hello sudha78, Its very interesting you mention oversold/overbought conditions. I had a post with Pivotprofiler indicating the same thing: there is no oversold/overbought condition. My advice for you is to study price action. Market internals will help you significantly such as: TICK, TRIN, PC Ratio, and Prem. But as a new trader you should not enter the wrong path as everyone else does by studying every indicator known to mankind. If you are working on reversal points, identify support and resistance. No need to complicate things, trading is fairly simple. (simple but not easy)

Thank you insideday. This is going to sound retraded but how do I create a new EL file? Im assuming I need to cut and past the above coding into a new .eld file? Thanks

Yea.. it might make your life easier if an automatic stop and target was placed the moment you enter a trade. Why dont you download a demo from Infinity? The execution matrix is super quick and you can place bracket orders very easily. Orders can be cancelled with one click... alot better than the TS matrix. It was designed for prop traders so the execution is top notch. Also, regarding scaling out... I tried both +5 and +10 at first. I found that when a trade goes in your favor, it will usually hit +10. I know traders out there use a +5 initial target but in my opinion it is too small. If a winning trade can not take at least +10 points... there is definitely something wrong with the strategy. Try focusing on your exits and get used to ringing the register. It took me some time getting used to scaling out, but its become a habit now and automatic.

I tend to partial out of my positions. I like taking half off as soon as possible. This way I bring my stop to break even and I am risk free. A risk free trade certainly takes alot of the emotion out when managing a position for me. I can give the trade more room sort of speak. Ive been there wsam29... a trader travels through one heck of a journey. (at least I did) But you know, the challenge is the fun part. Adjusting setups, designing new setups, letting that creative mind think is one thing I truly enjoy about trading. Best of trading.

Hey brownsfan, Yea I can totally see that... I think big traders would rather go with the S&P's instead. If the BIG Dow does take off in the near future, I think alot of YM traders will have a decent edge over others. It could also change the price action of the YM. Alot of traders rely on the S&P as the YM moves very similar. But if they start following the Big Dow... should get interesting.

Hi wsam29, I'll be glad to throw in my 2cents here. First do you have an exit stragey? It seems like you have a solid entry strategy but fail to have an exit. Do you have targets? Are you aware of the next line of resistance/support? As a trader you need to have an entry and exit strategy. The exit can be mechanical such as 10 points or can be based of pivots, indicator signals, S&R levels, etc... If you are aiming for 10 points, just place a sell order 10 points above your entry and forget about it. Second, this is my personal opinion but... a 5 minute TICK chart is a little lagging. Alot of traders use a one minute TICK chart.. perhaps you might get an earlier fill using a 1 minute TICK chart and could lead to higher odds of hitting +10? Observe it for a bit and see if you find if of any use. Third, a price and TICK divergence is a good strategy when combined with another. To be honest, I'm a little scared just to trade off price and TICK divergences. HOWEVER, the price and TICK divergence produce powerful signals at a key pivot. If I see a divergence at a pivot level, I am usually all over it. Fourth, for an exit strategy based on price/tick divergence, why not exit when TICK's reach the upper range? For example, on that chart you posted Im seeing an upper range of roughly 1000. So basically youre exit would be as soon as TICK's reach +1000. If you tend to become emotional and your mind clouds you in a position, try trading off pivots. Use your TICK/price divergence strategy and apply pivot points to it. The beauty is that by placing your stop below the pivot (not directly below... but i use a 10 pt stop) you know automatically if the trade is wrong. It offers a very comfortable entry level because you know the risk. Then the exit would be to the next line of pivot or at your TICK upper range reading. Good luck

What do you mean? The $TICK is just an market internal symbol which takes the stocks upticking versus stocks downticking on the NYSE. It doesnt measure the up/down differently for every symbol. The same $TICK is used by all traders. I think Tingull also uses the Russell TICK as well.

Thanks walterw. Please let me know when you find it.