matinthehat

based on today's action so far, i'm expecting the 06s. Might be a good place to short based on the day's range at that point, but if internals are strong and aren't backing off up there, I wont be looking short.

What are you looking at/for on the DOM? Just the flow or the orders at the BID/ASK? Start a thread on this, i'm sure some people would appreciate it.

I started to look at MP and volume at price to find better s/r, but it actually led me to look at price in terms of brackets, and now i just outline the ranges and these work out to be pretty accurate s/r levels. Drawing ranges sure helps you to see the important levels and ignore the noise, and as a beginner i would recommend it to anyone. By the way, this works in all timeframes. P.s. I have a journal over at http://www.priceaction.net if anyone wants to see more of what i mean by price brackets.

Trying to keep things as simple as possible. ES levels for tomorrow.

I am enrolled in this school to learn accounting and they have psychology and calculus courses in the program. How the **** am i supposed to learn about accounting when i have a shit load of psychology and calculus work to do every night and little time left for accounting and business work? Even if i were to put accounting and business first, i would not have any time for psychology and calculus and thus i would fail them leading to me being kicked out of the program..... It doesn't make sense. We are rushing through every single chapter and all of the content and it is impossible to learn at that speed. Already i have 2 exams coming up and i just started last week! Like what the **** are these mindless ******* academics doing to education? Some dumbass in the corporate office probably thought this up.

I am enrolled in this school to learn accounting and they have psychology and calculus courses in the program. How the **** am i supposed to learn about accounting when i have a shit load of psychology and calculus work to do every night and little time left for accounting and business work? It doesn't make sense. We are rushing through every single chapter and all of the content and it is impossible to learn at that speed. Already i have 2 exams coming up and i just started last week! Like what the **** are these mindless ******* academics doing to education? All theories and nothing else. Also, i literally am working 13 hours a day on course material and still it is hard to keep up. I have no time to even think about the markets, go outside and have fun, or do anything else that brings joy into my life. I need this education for job security, but this ******* school is making it impossible.

i have just started university and am having problems with the course load. there is way too much information that i need to learn in the course of a week and i am having trouble finding the time. right on the first day our lectures started and we covered an entire chapter in each course. how am i supposed to learn like this? if i can't manage to cath up, should i drop out? why is university structured this way? it is not like anyone in my classes are actually learning the material, they are memorizing it.

If you do not understand your chart, then do not do anything based on it. Noone can understand every single little movement in the markets, so there is no point in trying to. When you find something that truly makes sense to you, then you should have the confidence to act on it. If you lack this confidence then you should not trade until you have it. This might be a little off-track, but i believe Brownsfan's meaning of this thread was to spark an insightful discussion, and no intelligence is being gained by everyone stating the same thing over and over again (not to step on any toes).

In Thales's example i see a weakening down-trend. The first sideways movement (indicated by '1') is either shorts covering and new longs entering (high volume) or a lack of buying and selling interest (low volume). Price then declines out of this first box indicating that there is a lack of support (low volume) or a strong new selling interest (rising volume). Most likely there is a lack of support as more shorts wait to see what will happen before they cover. Also, most likely the downward movement out of the first box was on weak volume as the old shorts would have covered if they saw that there was weak selling interest to the downside, which is most likely what they did as price rose quickly off of those new lows. As price goes into the second sideways movement (indicated by '2') either shorts are covering ((high volume) which is most likely the case as the end of the trading session is nearing + price does not look very promising to the donwside) or there once again is a lack of buying and selling interest ((low volume) which is most unlikely). As price hits the red line we see a decline in price and then another test of this line and a failure to breach. Now this is most likely because of a fight between the short coverings + new bulls and the new shorts (high volume). As the new bulls see how long the bears have been in power and the small amount of time left before the day's close, they would most likely sell out of their positions and allow the bears to take price down as much as they can before they to are forced to cover. Feel free to add and correct. I do not like to analyse charts in this fashion as i am not a strong communicator.

I agree with you that volume does not lead price, but volume does create price. Volume is the effort and price is the result.

Here is a hypothetical example: Price is making continuous higher highs and higher lows. The up-trend started quick producing a steep trend line, but over time the trend line got less and less steep until price just stopped and went sideways. The bears are not taking price down or they are unable to. The bulls are resting or they are done. Or the bulls and bears are fighting for power. Now check volume. If volume is low at the top then bulls are either resting (unlikely based on previous price action) or they are worn out. But the bears are equally not present and this is beacuse they are waiting for higher prices, or because they are unsure, or because there just are not enough bear traders (new shorts and previous bulls selling their longs and turning into bears). If volume is high, then the bulls and the bears are fighting for dominance. The bears will most likely win based on the length of the up-trend, but the bulls could still win out if they attract a strong following of new bulls. If the bears win out then when price action starts to drift downwards the bulls who entered in at the top would be compelled to sell and possibly become new bears, adding to the supply. Either way, if the up-trend was a lengthy one, then there is a good chance that the bulls will be unable to proceed as the majority of the bulls who wanted to express their opions have already done so. Volume and price are reflecting what has happened already. No matter what you see on your charts, it is all past action. To me anyways, trying to guess,based on previous action, where price is most likely to go is just plain fun. I would rather develop my own opinion on the market than have some formula based indicator tell me what is happening. I would rather potentially profit (or lose) from my own analysis than have some indicator "guarantee" me profit (or loss). But, I am here because I am having fun. If I was not having fun, I would not be here.

Volume produces price. Volume is a graphic of trader effort. Price is the result of trader effort. No trader, no volume. No volume, no price. No price, nothing. I think that volume is important to the extent that it enables you to make a good guess as to what the motives of the traders are. IMO you can still trade profitably using price and price only, but if you want to give your analysis that extra depth, then volume would be a useful tool.

Hey man, here is something i was using. It is almost exactly what you are looking for. http://www.splinterware.com/products/idailydiary.htm

I am a beginner and am reading Trading and Exchanges: Market Microstructure for Practitioners by Larry Harris. This book is amazing. It will not teach you about market profile, but it will teach you everything you need to know about the markets and trading.