jitasb

Hello. I thought I would post a chart of the sort of thing I'm looking at. It is a 610-Tick chart of the Emini from yesterday. The horizontal lines are the 'levels' that I have 'judged' to be important taking into account Wed-normalmarket and Thurs-premarket price action. In this particular trade there is a breakout of a level then a re-test and a pullback to allow entry. All trades are not like this, for example sometimes you don't get a re-test, sometimes it pullsback only slightly. On top right there is another level 1175.00, where there is what I call a "weakish consolidation". Here is where price is trying to get above the level, but is always hammered back down. Once it breaks below then again there is a slight pullback which may have allowed an entry. As I said earlier in the thread, this is just a "work in progress" as I am demoing in Live market and also trying to do some backtesting (bar-by-bar) which does take time. The risk-reward is something which I am still kind of mulling over. In a lot of cases the trades do tend to work out, but the rewards are more 1:1. So I risk say 1.25pts and get to +1 or +2points before the price comes back to entry. Generally speaking I would be more comfortable with trying to catch the bigger moves when the market can make 3 or 4 points in a typical wave run. So will see how this looks over more extensive backtesting and whether I can improve on my entries etc. Anyway, here is the chart. Any comments on it or indeed on my rambles above would be most welcome.

Thanks, I'll have a look. In terms of Forex, I mis-phrased my question. As you say we don't have volume. So the question should have been "Since no volume on Forex, you can't identify the zones via volume peaks. So do people just use Price action behaviour to identify the zones" ?

Thanks for responses. I am indeed reading thru some of the Wyckoff material.

Hello. Have just strated to read thru the Wyckoff material. Have a quick couple of questions: 1. When you plot volume by price in order to highlight the 'zones' of most trading activity. Is the idea to trade breaks, false breaks,break and retrace type behaviour from these zones ? rather than trade within the zones themselves ? In which case one could also draw lines at these extremes rather than enclose them in a box. 2. If trading Forex, would a volume by price chart still be tradeable, or would you need to just view the zones uisng price action areas of support and resistance.? I realise that these questions are probably very basic, so feel free to refer me to a page/thread which probably already contains the answers. Thanks

Starting before market opens. If I draw in the major S/R levels from the premarket. Then watch how the price behaves at these levels. As the day progresses, then update the S/R levels and add and delete others as appropriate depending whether price respects them or not. For Example 1. A test of a level then a retest as confirmation it may hold. For Example 2. A break of a level then immediate rejection of same level back to inside a range. Would this be a reasonable start to investigating a possible trading strategy using only price action S/R levels ? Or is too simplistic ? And may I need more > such as pivots, prev day high lows etc. Just wondering if anyone uses just price action and S/R levels alone as a method of trading. I'm currently doing some demo trading on this and am trying to do some backtesting as well to iron out the rules etc. Would be useful to know if any other traders are trading in this way or similiar.