brownsfan019

Walter - I can post charts, that's not a problem, but as notouch said - you really need to see them in real time. They are just going to look like normal charts unless you pay close attention to the times on the charts. I would suggest opening a chart up with volume bars and compare it in real-time to your time based chart and see how things look.

Tin - I think most/all candle patterns hold their water much more on a volume chart vs. a minute chart. The underlying theory of candles is to visually represent the 'fight' between the bulls and the bears. We also know that the more volume being traded at a particular time, the more movements usually happen. So, if you want to see volume and you want a visual representation of the bull/bear fight, there it is on one clean chart.

Tin - I posted a chart setup of mine here on one of the threads and what I use is simple - volume charts, candles and moving averages. That's it. I guess in essence I am 'reading the tape' as I know many guys here do, but I do it in the form of my chart, not a separate window. When candles are rapidly forming (as notouch's chart showed), I already know there is heavy selling pressure, I don't need a seperate window to show me that (and be a distraction in my opinion).

tin - notouch summarized the volume based / share bars charting format very well. Basically in real-time, I can tell just by watching my charts if there's a lot of volume coming thru or not. I don't need tape, a separate volume indicator, or anything. As notouch said, you need to try watching real-time to really see the value. Here's an example while using a candlestick formation - in traditional candlestick analysis a doji symbolizes that the current trend may be coming to an end as the bulls and bears went back and forth and noone won. On a time chart that doji can be saying: 1) the trend is over or 2) the bulls and bears are simply taking a breather. Now, with a volume chart, that doji tells me that XXXX contracts traded in order to produce that, not just traders taking a break. In order for that doji to be produced, the bulls and bears did in fact have a good fight, which is what I want to know and see. I don't want a 'breather', I want a fight. As another trader asked me when I first questionned the share bar method, he asked if I watch my clock when I trade. I replied no. Then it hit me, the time it takes a candle to form is irrelevant. What you want is a candle that is telling you something - either there is action going on or not much is happening right now. I personally want the action/momentum and to participate in that. I don't want to enter a time where volume is low and moves are little. I can't stand trades that take hour(s) to develop. I just don't have the patience. The other big thing for me is that on a time chart with candles during big moves, you aren't going to be able to do much till it's too late. In other words, if the contract moves points over a 3 minute timeframe, that candle is useless. So during big moves, I saw giant candles forming and watched the action take place w/o me. I knew something was going on, yet I had no way to take advantage of it. That same move on a volume based chart can possibly provide me with MANY signals. It's night and day. In the end (for me at least) this is what pushed my trading over the edge. Volume based charts provided me a quick and easy way to visually see what was going on. Rapid candles = rapid volume movements that I want to participate in. Slow candles = low volume that does not help my trades.

Walter - I see how the immediate reaction is that you will not be able to see large volume surges. Allow me to explain how the volume based bars do in fact 'show' you the volume surges - when candles are printing quickly, that in turn means volume is surging. When candles are taking a while to print, you 'see' that volume is just not there. I think I mentioned this before here, but volume based charts were by far the one thing that took my trading to a high level. I was using time based charts and while it was decent, slightly adjusting the chart to reflect volume and not time, took my trading to the next level. I understand that most traders want a purely mechanical way of trading, but in my experience that is very difficult to do. You have to be able to visually look at a chart and make a snap decision. I have no idea how some guys here are able to do that with indicators galore on their screens, along with a couple charts, etc. Paralysis by Analysis at it's best. I would suggest MrPaul and others that are able to, also test your strategies on a volume based chart as well. The worst thing that happens is that you are unable to use Volume charts. The best thing that happens is that your trading catapults to the next level, as it did for me. I'll take that risk to reward setup all day!

If you guys are going to get serious about candlestick trading, you need to read Steve Nison's books. Just start there. He has the best books on candlesticks hands down. Idea for MrPaul and others looking/trading with candles and volume - if you like the combo, simply use Volume Based Charts instead of time based charts. You will find: Time based charts will NOT allow you to participate in fast moving markets as the candles can become VERY skewed. Do you normally stare at your watch while trading? If not, time based charts have a fundamental flaw. Why take up screen space with a chart that has candles and volume separated, when it can be combined into one neatly presented chart? Keep in mind guys, candlestick trading is my bread and butter. If you are new to this, make sure you study it first and get confident before placing real money on the line. A few pointers: Decide if you are trading with the trend or against it. Candles can be used in both scenarios. If you trade against the trend, make sure you have a hard stop in place and honor that stop. On an intra-day basis, be 'flexible' with your candle patterns. In other words, do not sit and wait for the picture perfect hammer. I'm sure that a simple volume based candlestick chart will not be 'enough' for some people reading this, so good luck with finding the right indicator(s) to use in conjuction with this. There's always going to be trades that the indicator(s) 'save' you from and others that prevent you from making money. Once again, the key is consistency.

Interesting video James! Thanks for posting.

James - it has gotten better since I mentioned this. At times it can lag, but not nearly as much as it was. Just an fyi.

Good points Tin. Very important to be able to step away from your business and have a life outside of trading. I actually have found that once you have a methodology in place that you consistently use, you 'study' less and less as you have convinced yourself that what you are doing works. When you are desigining your business plan, that is where hours and hours can be eaten up outside of actually trading. It's a big relief to be able to wake up and realize that the plan is in place, you just need to follow it. The only problem I had was figuring out what to do with all the extra free time! Since graphic design and website design has always been an interest of mine, I am going to start taking courses at the local community college in these areas. After that, might be something with cooking. It's amazing what a proper trading plan and business plan can do for you and your family. It's simply a matter of getting to that point. (I know, easier said than done). For those that are serious about trading though, keep in mind that there is light at the end of the tunnel. It's just that most people will never actually get to the light.

Guys - I think he's talking about a 'large' ES contract - just like the YM vs. the DD.

Bear - nothing really comes to mind... the EC (Euro FX) is a full sized contract, not a mini, at $12.50/tick. Perhaps something in the ag or commodities (non-financial) would be an option.

Walter - this is a great thread, esp for those new to trading. I think most, if not all, traders go thru about the same 'learning process' if you will... Get interested in trading, mainly b/c of the $$$$$ Start simple with something That may or may not work, but you begin to think that if you just have one more indicator or one more setting, that could push you over the edge to profitability You buy overpriced stuff, search the internet top down looking for the grail and continue to think the big money is just around the corner if you only had that one indicator Then, by this time, either: 1) you give up on trading b/c 'everyone is out to get your money' or 2) you really start the learning process Then it's simply a matter of developing your business plan and then working that plan with consistency As I have shared a few times on this forum, and even posted a chart setup here: http://www.traderslaboratory.com/forums/f2/chart-set-up-1251.html that shows how simple a chart really can be. I have to say, I think some of the chart setups that were posted are very complex and for me, it is way too much in order to be nimble on my trades. Point being, that once the trader reaches the point of realizing there is no actual grail, it's a matter of time before the approach is finetuned and you start to believe in yourself and your trading plan. As simple as it sounds, I think the difference between being profitable and not is proving to yourself that your trading methodology actually works. We all go into trading wanting to believe a strategy works, but until you actually prove it to yourself, you will always remain skeptical and continue looking for the next best thing.

It really does depend on the type of trading you are doing, but for intraday trading, I like to see around 100,000+. There are some exceptions, like the QM Crude Oil contract, but you also have to be careful with the size you trade. 6000 contracts per day would never be on my radar screen. I need at least one more zero on that number to consider it.

Bear - like tin said, I think the key here is get proper documents in place with an attorney before they are needed. You need to document the proper way you want things handled and then I recommend you give these to your broker(s) so they have them on file already. Proper estate planning is not cheap. Your other option is to let your state decide how things are to be divided out at time of death. I would highly recommend you avoid this option at all costs. As for futures, it's just plain ugly. Perhaps an FCM exists that treats estate planning differently, I just have yet to find one. If anyone knows of a futures FCM with a TOD agreement or similar, please post it here! Since the futures industry is way behind in estate planning, you need to take the proper precautions with a qualified attorney.

I hope we are not jinxing it, but the data and charts have been great for a while now. I can't recall the last crash or anything. It's been very good and reliable, which wasn't always the case. Can't speak on behalf of trading execution as I have never used them. Here's a commission page: http://www.tradestation.com/popups/fees/commissions_markets/cbot.htm

Bear - from my time as a stockbroker, I can offer some advice, but as another stated - talk to your broker, attorney, and/or cpa's about this topic. At the brokerage firm I worked at, we had what was called a Transfer on Death (TOD) agreement. Most major firms have this. With a TOD, once I got the death certificate, I could have stocks/funds/etc transfered to the appropriate people within days if the receiving person(s) had an account at the firm. If not, they simply had to open an account and then the transfer would take place. Again, you need to discuss this with the firm(s) that you are using. One disadvantage to using online firms is that you have to do the leg work yourself. If you are at a Merrill Lynch or such, you make one call and then someone else does the leg work. Of course, you pay for this as well. The catch - I have yet to see this in the futures industry. Having come from a stock brokerage background and now a full-time futures trader, I can tell you that the futures brokerages are WAY behind in terms of this kind of stuff - proper estate planning documents, statements, online services, etc. As far as I am concerned, the futures industry is decades behind the major stock brokerages out there. I mentioned once to Eliot at Mirus Futures that with my knowledge of the stock side and his knowledge of the futures side, we could create a futures FCM that was actually customer friendly...

I think it depends on how much info will be on each screen. I have six 17" Samsungs now and it's more than enough for me as I don't have a bunch of different settings for each market/monitor. The 19"s will obviously give you more space, but keep in mind that when you multiply that by 6 monitors, the overall space being used by the monitors goes up quite a bit. The monitor stand and monitors that I have now is fairly big and not sure that I would want the overall space to be even bigger. As a side note, I would recommend Samsung monitors. They are great for multi-monitor setups b/c certain models have a very basic and slim 'border' around the actual screen. Some monitors have logos, buttons, etc around the edge of the screen, but some Samsungs just have a slim black outline and it's much easier on the eyes. Something like this - http://www.samsung.com/Products/Monitor/LCD_Analog/LS17MJVKBJXAA.asp

James - one idea that comes to mind is the amount of 'stuff' on the main forums page. I know it's a fine line with having a good looking site and having items that can slow down load time, but that's my best guess. I am by no means a pro at website design, etc.

Freddie - as knyyt said, simply switch when the next contract has more volume. Put a reminder on your calendar to alert you to watch the date as it approaches. There's probably a website out there that lists when to roll as well, perhaps someone can post it here. I also get a reminder email from my broker, Mirus Futures, when rollover is.

Jan - as Soul said, in order to become a successful trader, you have to take ownership for your new business. With that being said, allow me to give you a crash course on traditional Candlestick Trading. If you google 'Steve Nison' you will find some good information from him. I would suggest you get at least one candlestick trading book. Here's a 3 minute analysis on your stock, all in hindsight of course. 1) Hammer / Spinning Top 2) Bullish harami 3) Hammer / Spinning Top 4) Doji 5) Hammer / Spinning Top 6) Bizarre Hanging Man Now, if that has peaked your interest, go get some Steve Nison books and see what all this stuff means! Good luck!

Does it sometimes take a while for the forum to load for others? I notice sometimes I get right thru and others it takes awhile to load. Any ideas?

Walter - I understand the premise behind what the volume is possibly saying and how that can be interpreted, but did my chart example just show that 5 out of 7 times the 'extreme' was simply that the current up-trend took a breather only to resume the trend? I don't see how the chart showed us that the volume surges spotted an extreme. 5 out of 7 times it reinforced the strength of the trend. To me, an 'extreme' would be a major reversal zone and in this chart, the surges in red were anything but a reversal area. Yes, it could have been traded on the short side for a profit if you were able to exit timely. We can both put our 'side' into words, but I think a chart is much more powerful since it is what it is. Taking a look at my annotations, would you agree that 1) there was a red volume surge and 2) if you assume a red surge can lead to a downmove that this did in fact fail 5 out of 7 times? I realize it's easy for me to do this in hindsight, but I'm hoping to provide another side to the argument b/c it can be very dangerous when people in a forum all think the exact same way, esp any newbies reading this. The last thing a newbie should do is read this thread and start trading based on a red/green volume surge. I am attempting to explain here that the surges in our example at best signified a pause from the overall trend.

I watched the video and here's what I saw (see enclosed pic): 1) Decent down move 2) Minimal down move 3) Minimal down move 4) Minimal down move 5) Minimal, if any, down move 6) Minimal, if any, down move 7) The 'big' down move we all saw So, looking at these statistics based on the chart referenced in the video, it appears to me that 5 out 7 times what the 'volume was telling you' was not very good at all. The volume told you to short throughout a strong up-trend. 2 out of 7 times you made money, if you were still around for the #7. Am I missing something here? Yes, it's easy to cherry pick the one or two times the volume 'worked', but that is useless if not taken into account with all the times the volume was 'telling' you something. This chart is a perfect example of why I think trying to use daily volume to predict moves is very misleading. Note - before anyone asks - I use a program called SnagIt to annotate my trading charts, like this one. If you are still using paint or not annotating your charts at all, that is a big mistake in my opinion. SnagIt is very user friendly and very inexpensive. It's from the guys that make Camtasia. http://www.techsmith.com/snagit.asp

Here comes the devil's advocate... Why the concern with how much volume is being traded today vs. yesterday vs. last Monday vs. last month vs. last year, etc? Don't get me wrong, I watch the daily volume simply to ensure that the markets I am trading are liquid enough for my trading, but rarely do I see a dropoff in volume that causes concern simply b/c of liquidity. Now, with that being said, I trade on volume/share bar charts. Please don't misinterrupt my question of the comparison of volumes over different timeframes. I want to see volume each day and want to see it during the morning session, hence the reason for the volume charts; however, I really don't care if today's volume is more or less than the previous day (or any other timeframe) when trading on an intra-day basis only. When you are trying to take little moves throughout the day, the important thing is to capitalize on those moves. The reason I mention this is that you can find days where strong volume equated to big moves and days where strong volume resulted in choppy or weak conditions. And of course, the end of day volume is great to know in hindsight, but as you trade during the day, you have no idea what to expect in terms of volume. My opinion Soul is to not be concerned with the day-to-day volume changes. We know volume fluctuates daily and we know that high volume days can be followed up with higher volume days and/or lower volume days. You don't know till the end of the day. I think the real concern is being able to capitalize during the day when there is a good flow of volume in the market. For me, that resulted in volume/share bar charts visually depicting when there is volume in the markets.

I'm not surprised Soul. Just make sure you have a good letter ready to go, preferably from an attorney. People will do just about anything on the internet to make a few bucks, incl taking anything from another site. If you do the videos in Camtasia, I think there's some ways to watermark, add logo's, etc. to it.