hunter1

Tams I am not much on teaching. A thread on how I trade or read the market wouldn't be much help I don't think. I use Vwap with 2 EMA's. Delta candles to help identify price action at key points For example if we hit the vwap from below and delta is rising I do not just take a short. I wait to see if selling starts to come in to confirm. The expectation is the vwap will be R but I still need to see proof that it is acting as R. Same with a VAH if we come to a VAH from below I expect it to act as R but need to see proof. The exception to needing to see proof is if these key area's are hit and if the fractal pattern is giving a short signal in the above example. If the fractal cycle is showing a short( this cycle must be matching on 2 of my 3 charts at least ) I will just enter a short with a 6 tick stop loss no matter what the delta says. The fractal cycles are very accurate.

Fractals really should be a other topic. To be short Bell curve and reversion to mean are nice but are not accurate. For example the odds of the 1987 crash was 10 to the 50th power. It never should have happened in any one's life time . There are many of these events that odds say shouldn't happen but do. Less extreme but still well outside a bell curve and mean reversion has happened many other time's and some news drives the market in moves that defy the statistical probability. A method to account for these moves is therefore needed. That is where fractals come in. you can account for these moves in a fractal picture but not in a bell curve picture However for 70% of the time the use of standard deviations from the vwap will be fine and that is what I recommend. I do have a fractal method for accounting for the other 30% of moves but that is far beyond my abilities to explain here. Just go with a vwap with 2 standards and you will be fine.

I can't wait to read the flames and crazy rants for what I am about to say. I can teach anyone to trade using the VWAP with EMA and guarantee with my cash that they will pull 4 points ( 16 ticks) per day from the ES. The trick is that they would have to do exactly what I teach them to do and nothing else. And that is a big trick indeed. The heart of forums are folks that already trade but are looking to add learn or do something else. The trick is only trade with the trend as I define. The problem is so many people cant help but take counter trend trades. Also to trade with the trend you must also be able to identify when the trend may be changing. That is why it is hard to trade with the trend. Most people have not worked on how to tell when a trend may be changing or ending. Vwap will give you trend . EMA will give heads up as to when trend might be changing. Trend is not as simple as a series of higher highs ect even though that sounds logical. Also to trade VWAP you do not use it as a single number but rather you must use its fractal coefficients. You also must learn to read the market and understand context. Stop looking for the magic indicator of buy when this color changes etc etc. So now flame on !

First I apologize. I thought this was a thread on discussing divergence trading. I thought that the traders log section was for people posting a log of their trades and trading method. My mistake. Second I posted because I agree with Urma about methods of reading divergence that do not depend upon oscillators like RSI etc. Third using delta candles to read divergence is hardly black box and I am willing to bet there are other good traders on this forum that use delta candles the same way I do. Fourth I have been running a free skype room for 18 months where I share my trades live and other share theirs as well. The room has about 30 to 40 members maybe more so there are plenty of folks that can attest to my live trading. Fifth what good is a log other than an ego massage. Open or join a skype room and call your trades as they happen so the world can see in real time the entries and exit. Posting a log is just another way of past posting.

posting a picture of a 10 pt run- took 6.5 out of it- from today from 11:51 est. This is my entry chart so you cant see the whole move on this chart. also will leave discussion of what the lines on chart are out of it. key is you see the dvg from the thick blue line. Dvg is based on price and volume not oscillators. Top bars are price.

I have not read the whole thread since I just discovered it so maybe it has already been said. Divergence does work. Reverse dvg which signals trend continuation gives longer moves on average than regular dvg which signals potential trend shift. Trend is chart specific. So trend on a 1 min chart maybe counter to trend on 5 min or 15. I use volume charts. Dvg based on oscillators alone is not that profitable . If you wait for the osc to actually turn over or cross etc to give a trade signal you may get into a trade to late. This is because oscillators lag. The best dvg is that which does not depend on oscillating indicators. Oscillators can provide you with a accurate read of where you are in the current cycle however the dvg you are looking for is the dvg between price and order flow. This does not lag.

Reading the last post i realized I had made a mistake that I should correct. If they are hitting the ask at support that is a buy signal and hitting the bid at R. is sell

thank you for your replies. I am writing out my logic in detail then shall see where I go from there.

My current trading method is very profitable. I would like to automate it if it is possible. I am not sure if it is because it requires me to read 2 different period charts.My trend chart alerts me to a possible trade up coming. The second my entry chart I then go to to see If one of 5 possible trade entries is setting up. The entry is triggered if I get the right price action from the entry point. For example for a long I have to get price moving to a new bar High compared to the last 2 bars. I use a limit order and OSO to set my profit and stop currently. Thanks for any input.

No tape reading does not depend on looking at old prints. What has just printed is not what matters. What is about to print is what you are reading. Are they hitting the bid or ask at the right area. Hitting bid at support = buy hitting ask at R = sell.

I am a scalper. Trade emini. oso set for 3 tics start with a 6 tic stop loss then adjust it lower after entry is filled. usually use limit orders but not always. Also quickly adjust profit target if I dont get immediate fill. never stay in a trade longer than 45 seconds. maybe 1 minute if lunch time. Friday was typical summer day. 27 trades filled 3 losers, 1 4 tic, 1 3 tic,1 2 tic. 2 winners less than 3 tics. 80% of trades are with my trend . Have only 2 against trend set ups I will take. I use just 1 chart for trading. Use mkt profile and cycles. A trade example is is hit VAH and get a short signal. Go short. get my 3 tics . Using MP I am expecting price to continue to rotate down Next target is either POC or a cycle point. If I have at least 6 tics room to target I go short again on next short signal..I deal stop is still above VAH but depends on entry and what price is doing. Profit target is also adjusted depending on volume at upcoming prices. Example profit target should be 84.25 but heavy volume is at 84.50 will move to 84.50 on a short from 85. After costs still make over $8 on a 1 tic trade so even if I just take all 1 tic trades I make $. For me this is a job so I need to make a daily paycheck. I used to trade other methods that meant staying in for the ride but I got very tired of making 15 points one day and losing 10 the next.

Has anyone gotten this indicator to work in TS?

evroom1 The DOM plots the areas for you. I am looking at TS right now. After the ask you get volume bars and then a volume number. You should notice 3 types of area's right away area's where the volume traded is far heavier than normal, avg area's and areas of very light area's. You look to trade the heavy area's and the very light area's Heavy are accepted and light are rejected. Just Like MP POC heavy areas are places where buyers and sellers agree on a fair value of some sort. Light area's mean only one side traded there the other side did not come to play. Now go watch for awhile and learn how to read the DOM as it builds and you are off to the races.

You seem to be trying to make this form of trading far more complicated and mystical than it is. This is just the way floor traders were taught to read the market back in the old days. My very first day on the floor I was given pad and pencil and told to chart the price movement. Then when once you got the basics down you we taught to read the order flow at price areas. That all it is. The Dom is just providing what I and all other traders that learned on the floor had to learn to do by hand. Volume and time didn't even enter into things at first because you couldn't chart those things by hand in real time. That was for the big guys upstairs. You get two types of price areas to look to trade. Accepted price and rejected price. As you get close to these areas you watch the order action. Are orders picking up or slowing down and in what direction. That's all there is. If you are near a previous rejected price area and order flow slows you have your trade. if order flow picks up and you go through the rejected area and there is a previous accepted area on the other side you trade in the direction of the previous accepted area.