Soultrader

Another warning today... Nikkei is extremely weak breaking out of its morning range downwards. Roughly 750yen difference from its close yesterday. Its pretty bad.... the markets are taking an ass whooping. One interesting thing is that since price traded within a tight range for most for the day, value area is still in the upper half of the daily range. Usually I would develop a long strategy for the following day... but situations are different and there is a big degree of fear in the markets.

Great point. With the current volatility, the 1 lot trader is having the hardest time. For instance, my position size is half at the moment but using a wider stop and wider target. The 1 lot trader does not have this luxury to practice sound money management. ES is extremely volatile now... price can easily jump 3pts against you before moving in your favor. If your typical stop is 2pts.... you are likely to get stopped out the moment you enter. And talk about great entries... if you can take less than 1 pt of heat, you are absolutely amazing.

Yea its a sad story... highlights the struggle of families affected by the current market crisis. You also have thousands of Lehman employees on the job market now.. who lived way beyond their means and even held Lehman stocks. Many are facing serious financial difficulties.

Have a look around the boards first because all answers to your questions can be found here. You need to be careful by applying strategies that you read in a book live. Test them out and make sure you have a profitable strategy. Techniques get outdated... and certain market internal strategies may no longer work. So once again, test it and then apply money management techniques into it. One honest opinion.... your question regarding whether to use internals to confirm a short/long. This tells me right away that you should not be trading live yet. You will just be gambling away your money if you relied on these tools without any structure to your trading. Try them out first.. find what works for you, apply them to a strategy, test it. If profitable, apply it live. Also for hardware, I run a 4gb Vista Core 2 Duo. Works for me.

Didnt read the post carefully... but I can see why it was misleading. Not many platforms have implementation of order routing with the DOM and charts linked. Traderjean, if you want a charting platform that can link your stops and targets you are looking at spending some dollars on a high end platform like CQG. BF... does OEC provide this function already? Traderjean, your entry/exit strategy should not have anything to do with the charting platform. If the AT can provide you with the order routing strategies... you are basically looking for a better charting/analysis tool. Am I on the right path here?

Hi TraderJean, Just so you know esignal is considered on the lower end Tradestation charts are good also, simply put $5k into their account and pay around $200 for the platform. Have you tried IRT? Something you might want to try out as well.

Better charting will require a different charting vendor. I think Infinity now uses Sierra charts? There is a huge population of Sierra chart users... though not my taste. It really depends on how much you are willing to spend on charting. If you are trying to keep costs low, then Sierra is perfect. If you do not mind spending close to $1k/month on charting, you will find alot more options.

Search function has been fixed guys. Thanks for the patience.

Hi guys, Is everything working fine? My apologies.. I just noticed this thread today. I did manage to located the problems earlier and should be fixed. But please let me know if there are any bugs I may have missed. Thanks

Thanks for the notice. I am working on this asap.

I agree with bf. Finance, business, and psych are my 3 top recommendations. Though I took none of those in my brief time in uni. Oh yes, and dont forget to add poker to your triple major.

I cant believe you are now taking high school kids lunch money!!!

Please elaborate. Time of sales can simply be displayed as a column. Its not an indicator at all. Were you trying to filter out the time and sales?

No you are right. More often the US markets lead. But good opportunities on the ES arise when the Asian markets lead. The correlation from a technical perspective is a bit difficult to explain as I do not base this off h-l-o-c stats, but from a price action standpoint. Perhaps I will start recording some data on my studies regarding this.

Excellent stuff sdoma. Very interesting indeed using a 3 day value area. Yep, agreed. Brett may take the ES price action alone... but I think it is important to incorporate the price action of global markets as well. I used to look at the US only.... but cant believe how limited my views were.

Heres my experience: First trading PC:　I built myself for under $1000. It was a nightmare as it led to problems down the line... ended up costing me $4,000 on a PC crash as I found I was long 4 times my usual position. Second trading PC: Some Dell PC. this was institutional so top notch PC. I highly recommend a plain Dell. Third PC: Toshiba with Visa. Didn't like it at first but used to Vista now and my specs are top notch. Running 4gb ram as well. Toshiba PC's are stable and solid. the only problem I found with Toshiba PC's is if you have multiple HD's. I have a 500gb C and D drive with 3 other 600gb externals plugged into it. this caused it to crash numerous times... so now only using 1 external HD at a time.

I think what I am after here is to point out the importance of global market correlation. Overnight ES action will not help create a trading plan for the regular sessions. I prefer to incorporate the price action of Asia, Europe, and the US... not necessarily predicting but looking for clues of short term price movements. (in this case day by day) For example, if the US markets decline but the Asian markets say strong the following day.. I would expect strength to follow through into the US markets. If the Asian markets decline but the US stays strong that following night (Asia night time), I would expect strength to follow through the next day for the Asia session. Like I mentioned before, I determine the potential short term movements from a technical perspective.. determining price action with market profile or seeing whether the markets trended vs rangebound, etc... I hope this makes sense?

Hi fw, Curious to know what the bands on your TICK chart are? Thanks

I follow intermarket relationships closely from a technical perspective. Not whether the markets were net positive/negative but I try to sense strength from a price action perspective. I do not agree with with Brett 100% on this one.. I follow the US and Asian markets closely and many trading opportunities arise from the correlation between these two giants. Current premarket ES is probably caused by traders on the other side of the globe reacting to the Asian markets. The next step will be to see what the big boys in the US do. However, more often I have seen the US markets follow through if the European markets express weakness as well.

Just a word of caution today. I expected strength to follow through in the Asian markets today but we are seeing a complete downtrend. Premarket ES is extremely weak as well tanking well below yesterdays close.

Further resistance at VWAP....

Another VWAP setup on ES premarket. Combination of VWAP, volume, and candle patterns.

Japanese government on the other hand has been giving tax breaks to attract private money into the stock market. You are definitely right about diminishing liquidity with extra taxes. We only pay 10% for profits related to stock trading. But yet, there is approximately $15 trillion of Japanese private savings stashed away in banks without the intention of investing!

A bit of weakness present on the Nikkei after yesterdays strength. Rejection above yesterdays value to fall within value area. However pretty rangebound today and hovering in the upper half of yesterdays value area. The Asian markets seems to be hesitant today and will most likely wait on the US markets to start. Therefore, I feel like the US markets will lead for the day and then the Asian markets will react accordingly tomorrow morning.

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