Soultrader

An interesting chart from 12/05 I wanted to share with you all. TICK fades work best in a rangebound environment. In an uptend though, you want to be fading the lower extremes only. Vice versa for downtrends. Notice the profitability on this day.

Chart from Dec. 21, 2006. This is something I look for all the time. First you need to understand what the market is trying to do to. This will allow you to read if a new TICK low is valid or not.

Chart from Dec. 26, 2006. Price lifted into value during the morning and volume died out significantly after 10:30am. However, going into the afernoon session you can anticipate a price breakout above value due to the bullishness in the TICK's. New rule for me this year: OBEY the TICK's

I still use a MP chart but I do mentally use MP on my 233 candlestick tick charts. Takes some practice but very useful for me.

Hi Traderboy, The lines I use are VAL, VAH, and floor trader pivots. The green lines are R1, R2, R3, S1, S2, S3... the pink/purple lines are the monthly pivots and the cyan lines are the weekly pivots. The red dotted lines are VAH and VAL. They are the same for all my videos. Hope this helps. Soultrader

With the advancement in technology and improvements in trading softwares, many intraday traders are now automating their trading. There are advantages to this... emotions can be eliminated (not completely but more than discretionary) and traders can use mechanical exit points. Example: scaling out at +10pts on every trade. As a pure discretionary trader, I still believe there is an edge in discretionary trading. Intuition comes into play as well as better entries. Why better entries? If one is a good tape reader he can pinpoint his entries and take minimal heat. This can save a trader a ton of points in the long run. I have a couple questions regarding this topic and could use your guys opinion. Do you think discretionary traders enter before automated traders? What are your thoughts on discretionary vs automation? What type of trader are you and which one do you prefer? Thanks, Soultrader

Thanks scalptrader. My main focus here is for folks to share and exchange ideas and knowledge to make them a better trader. Let's try to keep it educational.

Guys... please respect each others posts. I try to maintain a friendly and quality environment here. Either kill this debate or I will close this thread permanently.

If you would like to collaborate on designing a custom indicator or receive help in any way, please post in this forum. This will be a great way to code your ideas for those who may have little experience with coding.

I personally have no idea who the man is until I heard him on the radio show. 15minute for me is way too long and on the other hand scalping is not my style of trading as well. We all have our bread and butter.... for me its one shot one kill type trades. I have tried scalping but had little success. That does not mean scalping does not work. It just doesnt work for me. I have also tried using 5min, 15min timeframes. Never liked it since I was entering late all the time. I tried using 1minute timeframes.... too much noise. Now Im comfortable with a 233 tick chart and do not place too much importance on time when viewing a candlestick bar. I prefer to see how fast 233 transaction are taking place. Peter Reznicek was also reffering to intraday techinical patterns. I am assuming you do not use these patterns as a scalper scalptrader? Most scalpers I meet rely heavily on the tape using super tight stops. Always amazed how their execution and entry is flawless. Perhaps you can elaborate on how you identify scalping opportunities? I am definitely interested. Soultrader

Thanks Torero Merry Xmas to everyone as well. Thanks for supporting Traders Laboratory this year, we will try to make 2007 another great year. Happy Holidays!!

In my opinion it would not be wise to excluse volume from your analysis. Volume is the only tool that is not a derivative of price. Therefore the information is pure. Although I do not necessarily plot volume on my intraday charts, I can read volume through the tape. Perhaps you may want to look into divergence signals using delta like Tingull does. You can also trade price patterns, learn market internals to judge strength and weakness, etc... There are so many ways you can base your trading on. Good luck.

I was listening to an interview by Peter Reznicek today and found one of his comment particulary interesting. I am not a candlestick pattern trader but he mentions how day traders focus too much on trendline breaks, channel breaks, and candlestick patterns on too short of a timeframe. He mentions how these technical patterns are only valid on a 15 minute or more timeframe. I also agree with his comment. I am not particulary fond of price patterns when day trading. Any thoughts?

Im definitely looking at 580 and 530ish level. Premarket hardly reacted to the economic numbers that came out. I'll be applying rangebound strategies until we break above 580 or even 600 to be safe.

Welcome to the forums Steve. Plenty of index futs traders here and glad to have you on board. Looking forward to some great YM dicussions

Thanks Tin. Basically the shorter the IB, you would look to play a breakout? And with a wider IB the more likely price will rotate back and forth?

Just a quick reminder for those who are not familiar with our chat sessions. We meet with several traders in the forum everyday from approx 9:00am eastern. We have a nice group emini traders. I also like to go over some key levels on the YM before the open. Please feel free to join us in the chat rooms.

I want to discuss the average range on the initial balance and its impact on the trading session. As for my trading, I dont quite focus on the IB range as I do not play breakouts from the initial balance. This is a very rough estimate but the average IB for the ES seems to be 4-4.5 pts and the YM 30-40 pts. Is there a correlation to the type of day we can expect on a narrow or wide initial balance? Does anyone play breakouts from the IB? If so, is this a strategy worth looking into? I am trying to develop a strategy based on the initial balance. Any input would be appreciated. Thank you.

Nishant, I do recommend you stay when your order is executed. The last thing you want to happen is some computer error and being down with a heavy loss. You can use OCO orders. If you use advanced execution platforms like Ninja, you can set your stop and target parameters. Once the order is executed you can simply walk away and come back later. Also obviously in any market, during a 4 hour timeframe you are not going to receive 100 buy/sell signals. More like 1-3 signals.

Hi dyoung, There are not many books out by Wyckoff or Neill so I suggest you read them all. I personally keep Neill's "Tape Reading and Market Tactics" with me all the time. Its a classic trading book and a must read. Hope this helps Soultrader

Here's a little trick you can use. Simply copy the vide code and email into this link: -= Virtual Events =- Also you need Real Player or else they wont play.

CBOT stores all of there online webinars. They have a collection of free educational stuff. Thought I'de share it with you all. -= Archived Event Calendar =- Enjoy

Yea... 10-20pts seems to be the magic number. Ive been watching this concept occur over and over again. Im usually careful about playing breakouts of value when the previous days range is right above/below it. Keep an eye on it next time.

Trading video from Dec. 18th, 2006 based on value area and the previous days range. Feedback is welcome. CLICK HERE TO VIEW VIDEO Charts created by Tradestation Presented by Traders Laboratory

Interesting Tin. I am actually bullish on the YM today. I think the bigger picture is best obtained by analyzing the daily charts. The trendline break on Nov. 27, was a little scare but we are now rallying above the trendline and broke above the key resistance of Nov. 20's high. Should be interesting this week.