brownsfan019

Just a reminder that Friday, April 6th is a US holiday. Holiday Calendars: http://www.cme.com/trading/res/cch/holiday_calendar3513.html http://www.nyse.com/Frameset.html?nyseref=http%3A//www.nyse.com/&displayPage=/about/1022963613686.htm http://www.cbot.com/cbot/pub/page/0,3181,1029,00.html

Pivot - I see your points. I suppose I am the same as well - I want a profit and want it quickly. Patience isn't always my strongest point, which is why I think exiting on WRB's works for me. There's no random price target sitting out there and no *hoping* that that target is hit at some point in the day. With WRB's as the exits in conjunction with my setups, it's been a good mix so far. Sometimes the WRB's happen to be dead on for the ideal exit at that point in time for me. Other times they may be a bit early, but still a good exit for me. Since my stops are small to begin with, I can't afford to sit for hours to see if a big move is coming later. Simply, I will look for my trades and take them and hopefully if/when the big move comes, I am already in the trade.

Hoping some of you experienced forex guys can answer some basic questions. I've been trading futures for years and enjoy that, but just curious about forex and whether or not it would be a good fit for me. Some questions... 1) Tell me about forex trading. I've read horror stories of bucket shops and such. How do you avoid this? 2) I like volume, esp Volume Based Charts. Is there anyway to translate that to forex since it's not trading centrally? 3) I've read that forex can trend more in comparison to indexes. Do you find this true? If so, how often would you say that a trend can go? 4) Assuming it does trend more, is it better to swing trade here or is it possible to daytrade. I've also read that brokers can 'get mad' or 'blackball' you if you trade too quickly. 5) How about during econ news... I've read that the spreads can get ridiculous. 6) What's a good charting platform? 7) How does leverage work here? I understand futures, but have read about 'mini' accounts and such in forex, so not sure. 8) Who are stable, recommended brokers? 9) What else should I know? I appreciate the help guys. Just looking to satisfy my curiosity. Thanks!

Pivot, A few items of consideration: 1) Regarding VBC charting and WRBs - I would actually argue that WRB's are more of an impact on VBC's vs time based charts. The reason is that in order for a WRB to appear on my charts, there has to be significant volume being pushed in a short period of time (since my VBC settings are lower). So, when I see a WRB appear, that grabs my attention as there is a brief momentary imbalance of buyers and sellers. If I am in a position, I look to exit at the high/low of the WRB. So, before discounting WRB's on VBC charts, think about what is actually going on and what is being displayed on the chart. You want to know when there is a volume push and we know that WRB's are pretty good for planning exits... therefore, when a WRB appears on a chart that is purely based on volume, that requires attention. 2) Regarding the chart that you posted, one item stands out that you did not comment on - why would you WANT to wait and watch that WRB form in front of your eyes? You're a smart guy and realize how much $$$$ is exchanging hands there, so why would you purposely opt to not trade during that time? I understand the conundrum though - if using a time based chart, there's nothing you can do but sit and watch. I know, I used to do that. Talk about frustrating. So, to summarize on the chart posted - you would consider trading during the 'ok' Zone 1, watch the big move in Zone 2, and then either trade or bypass Zone 3 due to time. So, what was really accomplished here? 2 out of 3 possible trading zones were passed on and the one that might have provided a trade or two wasn't that great either in my opinion. Before you answer about why waiting b/c the WRB is telling you something, ask yourself if you really enjoy sitting and watching price drop right in front of you and you have to wait for that drop to end before considering an entry... Why does the drop have to end in order for you to consider a trade? Seems odd to think that - I will enter once price stops moving so much.... :rolleyes: 3) Regarding candle blending and unblending - I just don't do it. Nison talks about blending in his books and to be honest, I don't see the value. If you need to blend your candles, go to a higher timeframe. If you need to unblend, lower the timeframe. Problem solved as far as I am concerned. Of course, I can post charts where blending worked and charts where waiting for the blend cost you money. For me, keep it simple - no blending/unblending. Please keep in mind that I used to trade off of minute charts exclusively and your chart posted provided a perfect example of why that did not work for me - you get to watch when there is serious action going on and then join the party once things 'settle down'. Well, if you are daytrading and looking for movements, don't you need/want the action? If so, then I would argue that you cannot wait for the action to end, you need to be ready to pounce when it presents itself. Two very different points of view I suppose, but a good discussion.

Pivot - your chart brings up an excellent visual of why I believe VBC's are sometimes a better way to set up your chart. I labeled your chart with 3 main zones to trade. Where would you rather be trading? Zone 1 = moderate movement, possible trade setups, but nothing 'big'. Zone 2 = I want to be trading during that huge down move. When moves like that happen, I need to be in the trades, not watching a massive amount of money exchange hands. Zone 3 = ugly. I realize this is the WRB thread, but it's a great example of how changing the way your chart is displayed can make a huge difference. This is a perfect example of why I no longer use time based charts. Huge massive candles do nothing for me, esp in candlestick analysis.

Pivot - what market is that a chart of? Just curious.

I agree with 273 and Soul as well. With no real explanations and just a running total of trades, it's not providing much use to anyone here. Pippy, if you want to simply post your results in a pay service, start a blog or something. If you want to post about actually doing your own trading, post here! That's my suggestion.

I didn't realize certain types of traders using some form of TA argue that 'their' form of TA is not actually TA. Makes no sense to me whatsoever. If you are using price, some form of charting, and some analysis that does not look at market fundamentals, that's TA as far as I am concerned. It's either TA or FA, right? So, unless you are reading company reports, checking PE ratios, etc. you are using TA.

This book is the follow up to the review I posted here: http://www.traderslaboratory.com/forums/f8/candlestick-course-steve-nison-1560.html I would suggest this book (Japanese Candlestick Charting Techniques, Second Edition) if you are interested in expanding your candlestick knowledge and want to learn more about the theories and explanations behind what the candles may be telling you. This book feels much more like a textbook; whereas the review listed above is more of a workbook feel. In this book, Nison talks about daytrading (which is nice if you are a daytrader) and his view of convergence. Again, this book takes the workbook to the next level and he really dives into specifics. This is ideal for the trader that wants more and wants to understand why certain patterns are respected as often as they are. If serious about trading candlesticks, I would highly recommend this book!

If you are new to candlestick trading or want to polish your skills, this is a great book at a great price! Steve Nison has long been credited with bringing candlestick analysis to the West. This book is simple and to the point, great starting point for any trader!! Probably most useful is the Q&A throughout the book. It almost feels like a 'candlestick workbook' vs. a normal 'textbook'. This is a great starting point for any trader interested in candlestick analysis!

Here's what TA can work in futures on an intraday basis - TA is simply a self-fulfilling prophecy. The more people 'seeing' the TA setup, the more likely it is to work. For example, in one of the threads here, someone posted a 'pinochio' bar chart setup. I never heard of it. But, in candles that was simply a gravestone doji. So, if candle traders are shorting the doji and bar chart guys are shorting the pinochio, price may travel lower simply b/c of the amount of shorts entering the market. And since each of us may enter at different intervals, it's simply a matter of if there are enough guys trading the doji/pinochio setup to drive it lower. So, it can be argued that the TA was in fact what pushed the price lower to the point where the tape readers got interested as well. I really believe it's just a matter of how many things line up at/around the same time on the majority of traders charts. That's all. If you have a trade that failed, all that says was that the majority of traders out there did not see what you did. Trades that work are simply telling you that the majority of traders 'agreed' with you, but not necessarily b/c of the exact same reasons. I don't think that discounts TA at all. I mean, I am successful trading with candles and moving averages, so I could argue that if you are tape reading and not making serious money, tape reading is lagging. My point being that the setups themselves - whether tape reading or TA or flipping a coin - is simply one part of the overall picture of why your trades win or lose.

Al - perhaps the theory sounds great of entries being irrelevant, but the practical use of that is marginal at best. Don't take my word for it, test it and trade it live and let us know how it goes.

Tor - I appreciate your theory. However, the MSCI is one of (if not the only) international based futures contract (http://www.cme.com/trading/prd/overview_EFE16575.html). The S&P Asia 50 is a very unique product as well that is still struggling for interest (http://www.cme.com/trading/prd/overview_PA16059.html). Just providing something to think about. At one time, I used to think the same thing - a new and 'different' contract is just what the market needs and more importantly, what I need... It was never about the products.

James - I'd like to suggest an area where members can post feedback on brokers, trading software, books, education co's, etc. Instead of people posting in threads about rates or what they think of XYZ, if there was a compilation of reviews from users readily available, that may assist those new to the site and those looking for feedback. I would imagine the broker area would be of great interest since we all know that futures rates are highly negotiable.

My suggestion (sorry James) - get Firefox and then download AdBlocker. You can then block the flash ads and other ads throughout the site. I was having the same problem and posted in a different thread and until I was using Firefox and adblocker, I was having lag issues as well. I am on cable. Wish it was fiber, but that's a long way away before it's throughout the US! :mad:

Collective2 is an interesting website. I ran a couple test systems there and it's a great exercise if you really want to see how you perform in real time. The only issue I had was that if you need to execute orders quickly, there was a serious lag at times b/c it is a web based order entry system. I would suggest taking a look if you want to test some ideas out and/or make a few extra bucks from people subscribing.

Hopefully something like this could take off. I never get my hopes up anymore though... the Big Dow, the Int'l futures contract (MSCI), the Russell 1000, Asian based, the Biotech contract, etc. etc. I've learned after awhile to not get your hopes up on any contract being a success. If anything, it takes MANY months/years for a contract to gain some interest.

Notouch - I am not looking to code that at all. I don't believe I posted that the way I trade candles is to look for high volume on a price reversal anywhere on this site. So, perhaps what you posted can be automated, but that's not how I trade at all.

Notouch - I think some aspects would be very difficult to code. For example, when trading candlesticks as I do, I can easily code what a hammer is by textbook definitions. But in real time, I am much more lenient on what I call a hammer. In intra-day trading, I think you have to be. So, while an automated system may be looking for picture perfect hammers, I may have taken other trades simply by 'eyeing' the charts up. And I wouldn't call one hammer better than the other, so to bypass the non-textbook hammer is a big mistake in my opinion. I think it really boils down to what you are using in your trading. As you said, tape reading may be easily put into code. I have no idea if that's true, but it sounds like it could be. Your textbook candlesticks can easily be put into code as well, but that is one part of trading candlesticks in my opinion. A hammer that appears in chop is nothing to me. I would love the ability to code my trading system in such a way that I know it will do what I can do on my own, if not better. And since I am unable to do this myself, there is strong hesitation to try to find a programmer that is willing and able to do it.

Here's my 2 cents - if trading futures, I use an 'around the clock' chart setup with VBC's. By doing so, gaps are not a consideration for me. Not sure if that's good or bad or indifferent, but I'd rather trade my 'normal' setups vs. trying to play a opening gap specific strategy. I'm not saying those don't work, b/c they do if you know what you are doing. Simply, for me, trying to implement a gap strategy, an opening strategy, a 15 min strategy, etc. etc. was not profitable enough for me to spend considerable amounts of time focusing on. By implementing a VBC chart on a 24 hour timeframe, all these 'extra noises' are not a factor to me. Again, that's not to say don't bother researching them, but in the spirit of keeping things simple, I simply look for my setups regardless of this other stuff. As you can tell, Mark is extremely intelligent and has done years and years of research on this and many other topics of trading. I don't know if I don't have the smarts and/or the patience to perform that kind of research, so I have chosen to not look for specific strategies based on the time of day. FOR INFO ON VBC'S CLICK THIS LINK: http://www.traderslaboratory.com/forums/f34/volume-based-candles-how-profit-1414.html FOR INFO ON WRB'S CLICK THIS LINK: http://www.traderslaboratory.com/forums/f34/wide-range-bodies-big-candles-1480.html

Interesting thread... As I mentioned in another post, I suppose I am a discretionary automated trader... In other words, I am discretionary b/c I am pulling the trigger myself and automated b/c I simply follow my rules. In my time as a trader and broker, I have never seen a successful automated system that can stand the test of time. I won't argue that some systems are very profitable in a given period of time (but who's system can't do that, right?). The key in my opinion for the automated traders is knowing when to turn your system 'off' or when to leave it alone. It's easy in hindsight to say that based on your backtesting, you would have turned it off at XYZ point, but making that call in real time is not so easy. If you turn it off and you simply were in a small drawdown, you lose. If you let it run and turn your account into half in one month (like the blog post pasted here), you lose. And as that blog post said, in essence, no matter what - your emotions can/will drive your ultimate decisions even if you are a 'hands off automated' trader. And of course the devil's advocate in me says that if there are successful automated traders out there, you won't find them on the internet message boards. I think they in fact have too much to lose by even hinting to their setups. I can post my charts all day here and each person would interpret them differently. I post a trading code and everyone has the exact same thing. I would think that's a potential problem...

Pivot - very interesting indeed. Do you know how to set the coloring on the candles based on the volume? I may have to contact Robert or find it in the forum somewhere. Thank you for sharing!!

I spent some time looking at Firefox more and the free add-on's that you download straight from them are just so much better, easier, etc. than these IE7 ones I found. May be time to make that change...

Well said notouch. I voted discretionary but would like to take my vote back per notouch's post. I would love to have my system coded in such a way that I could walk away and not come back to a margin call. I know, that's extreme, but that's how I feel. Unless I code it or trust the person doing it w/o question, I remain a discretionary automated trader. :p

Here's another add-on for IE7 - a spell checker. ieSpell - Spell Checker add-on for Internet Explorer I am beginning to wonder why I am using IE7 where you have to go out and download all these extras whereas I believe Firefox has most of this stuff built in...