FulcrumTrader

Was Rob using the "TTM Squeeze This" indicator??? :cinema:

The PROX Bars were a concept I have had for many months now but I never really worked on it as a focused project until recently. Kyle contacted me to see if I could get the PROX Bars built to tie in with his trend following set ups and approach (since he knows all the FulcrumTrader supply & demand event set ups and ways of tracking order flow). I spent several months working with programmers to get the PROX Bars built and functioning the way I wanted. Once they were ready, I told Kyle he could run with them for use with his trend following system. I track levels of held inventory (open interest) and look for supply and demand events in what I do at FulcrumTrader. What Kyle will be doing with his TrendScalping.com is all geared towards more simplistic and at the moment trend following scalping. I do think paying attention to order flow is a critical component to determining probabilities for trade set ups. I have found in my experience that I know many order flow based traders who are profitable traders month to month, and I do not know very many price action only based traders who are profitable. I have been able to see tangible positive results with those traders that seem to stick with and pay attention to order flow activities within their trading. Most of those who try and use Delta the way I do, seem to take about 20 to 30 days to grasp the various supply & demand event based set ups I use. What Kyle will be doing with the newly created PROX Bars, and his very simplified approach, should be easy to learn imo....maybe a few days. Keep in mind, what will be presented at TrendScalping is more focused on intraday scalping within trending moves......what I do has intraday and longer term based set ups (while tracking ongoing open interest of the futures instruments and the levels of held inventory).

Or......if you use PROX Bars they already take into account all aspects of the order flow/order book data (market order driven order flow and limit order activity in the book).

All 4 order book/order flow components should be watched.....exactly why I have stated I track Cumulative Delta and Cumulative Uptick/Downtick together. I want to see if the market order driven order flow is hitting resistance in the order book or not (how effective is the market order driven flow as it hits the book). Price ---------- Delta ---------- Cum Up/Dn tick (Mid Pane is price.....next lower pane is Delta......lowest pane is Cum Up/Dn tick) Images | ChartHub.com Not until all THREE items are in alignment do you then have the best probabilities for linear movement of price!

I have seen the latest version which is ready to go and I do like the information provided all in just the price candlestick itself (I am used to looking at three separate panes for this info at present). Kyle the trader who will be bringing the PROX Bars out this month is a very simplistic minded person, who likes intraday trend following, so I think he has a good set up to work with. With all my background in Cumulative Delta based trading (over 8 years now) I was asked to test out the concept and I like the direction this is going. Between my feedback and other traders soon, doing some pre-launch testing, I think trendscalping will get a good feel for how to move forward with this idea.

the_z - I posted a chart in a different thread of the new PROX Bars ( http://www.traderslaboratory.com/forums/automated-trading/9625-software-automating-tape-reading-4.html ).

Here is a day that was very similar from late March.....once Equities turned on their BUY program pumps it was an ES SHORT covering party all day (reacting to the strong Equities action). Images | ChartHub.com NYSE TICK that day Images | ChartHub.com

Just watch a NYSE TICK market breadth chart (30 second or 1 minute chart) live and you will see the cycling of Equities BUY and SELL program activity when it hits. I have used this market breadth information in my trading for over 8 years now.....it is a very good idea to track the Equities action intraday if your trading equity index futures instruments (ES, YM, TF).

No....these type of days happen several times a year imo. We had a new quarter and a pre-holiday Friday all mixed into one. US Dollar was down and Equities had the BUY program pumps on all day! Take a look at how biased the Equities action was Friday (take a look at all the BUY programs too with many plots at +600 and above)! Images | ChartHub.com Not a single Equities SELL program all day......I see this pattern about 3 to 4 times a year.

I actually like the ES for the most part......very stable with LOTS of liquidity and LOTS of commercial (not retailers) participation. The more commercial participation the better for using Cumulative Delta Volume as a proxy to track the ongoing open interest. I think one reason many developing traders have problems with Equity Index instruments like the ES is not paying attention to Equities action (during US cash session and during EU cash session hours). For example, during US cash session hours Equities BUY and SELL program activity tugs the ES around most of the day. The large liquidity participants holding open interest in the ES then have to constantly adjust/react to this Equities action. Traders that do not understand how to track this process then get perplexed by the price action. When Equities action is dormant, the ES is a range bound chop fest. When Equities is pounding BUY or SELL programs, the ES can trend into great runs of covering action (large liquidity participants dumping out of held inventory) dominating the order flow. Find a way to track the cycling of the Equities BUY and SELL program activity and you will get a much better perspective into the ES price action.

Hard to beat DTN.IQ for NYSE TICK......and they recently improved their infrastructure for this data (realtime data flow they report every second).

For Traders….Check out the level of performance the Blue Angels are committed to. They undergo intense screening and training. Visualization, contingency planning, attention to detail and repetitious mental rehearsal shape their outstanding results! What kind of preparation are we committed to? WHY do they use Visualization techniques? .......because you have to defeat negative current psychology with visions of a new potential reality, that shape new constructive psychology. You have to build a BELIEF that certain tasks are possible for you (creating new constructive psychology) BEFORE you are actually able to do them. You do have to BELIEVE before you can ACHIEVE......so that a proper constructive psychology is working FOR YOU instead of old unconstructive psychology working against you as you operate within the desired reality (trading live).

As a prior military aviator, I do fully understand how the "Blue Angels" and other elite groups (working in life or death situations) develop advanced psychological capabilities (THERE.....I won't use the term Discipline just for TAMS!) in their training programs. THEY use VISUALIZATION methods combined with small segmented practical (and highly repetitive) training exercises............ [ame=http://www.youtube.com/watch?v=GRkzMtIcNHs]YouTube - ‪Blue Angels teamwork (part 2 of 2)‬‏[/ame]

I am not sure what trade platforms PROX Bars will initially be available for, but over time they may become available to some of the main platforms that most use. I am not sure what Kyle (trendscalping.com), the guy that has these new PROX Bars, is planning on doing to make these new style of price bars available in the beginning. I know he was in initial discussions with a few charting companies since he finished getting these PROX Bars set up. Kyle knows all about order flow (Delta) and order book resistance to the market driven order flow, so I like the idea of combining this info into a price bar.

I have seen all the latest and greatest "tape reading" software these days but none of it is all that effective imo. As far as looking at the tape all day, looking for "tape reading" specific set ups, no thanks. Watch the tape intently for a couple of days and then see if you want to shoot your head off by the end of the week.....LOL! There are much better ways to see what the market order flow and limit order activity is doing to price through more simplistic visual means imo. You could use footprint style of charts or watch price/delta/up-dn tick together as candlesticks, etc. There is also a new style of candlestick which incorporates various inputs (price, order flow, order book resistance, price positioning) into the price candlesticks - PROX Bars PROX Bars may help traders see all this combined activity through simplistic color coding of the price bars.

SC seems to be moving in the right direction and more knowledgeable CD users are working with that platform which is great (many SC CD tools users at bigmiketrading). Also to note, I have been helping Multicharts with their initial venture into CD tools and what I tested was working pretty good. They have not yet released a beta version of their CD tools to the public but that could happen in the months ahead....so far so good.

*** UPDATE *** When tracking any sort of BID/ASK differential tools (Cumulative Delta candlesticks, footprint charts, GomLadder, the new "Prometheus" tool over at bigmiketrading, etc) you MUST use CLEAN DATA ! I have tracked Cumulative Delta now for 8 years and this is the current proper way to track Cumulative Delta; Investor RT Pro/MarketDelta.com connected to DTN.IQ feed SC connected to DTN.IQ feed NT7 connected to DTN.IQ feed TradeVec connected to DTN.IQ feed Multicharts connected to DTN.IQ feed (YES indeed!!! I have been working with Multicharts past weeks and they are going to offer Cumulative Delta tools in the months ahead......I have already tested their initial Cumulative Delta candlesticks and I suggested they go ahead and release CD tools for public "beta" testing/feedback........YEEEEEEHAAAAAAA!!!!!) *** I DO NOT ever recommend using continuous contracts for proper Cumulative Delta tracking or ever doing backfill data (good DTN.IQ feed thrown on top of junk broker supplied data).......DON'T do layering of data for CD tracking. Also, I have not yet found consistent BID/ASK data from Esignal, so I would not use that data at all. I also do not at all suggest using Zenfire, TT Fix, TS data, OEC data, Transact data, IB data, etc. With DTN.IQ feed you get CLEAN exceptionally reliable BID/ASK data with 30 days of historical BID/ASK data access.....this is the only feed I use for BID/ASK data at this time. For additional details, there is a free webinar over at bigmiketrading this Thursday that covers all aspects of Cumulative Delta usage and data needs. Hope this info helps!

There is the possibility of using the TimmyB modified GomLadder from NT7 but make darn sure you use ONLY DTN.IQ feed to have proper BID/ASK data! Read these EXCELLENT threads at BMT.com for proper details ( Big Mike's Trading Forum ); Volume Ladder Highlight Addition Analysis and comparison on different data Feeds and Platforms for Bid/Ask Studies

SC has limitations for proper BID/ASK differential use (best to use Inv RT or Marketdelta.com) due to lack of sub-second capabilities............. [sierra] And what about SierraChart - Page 15

In past months I have shifted all my intraday trading to 3:1 set ups with less focus on win/loss ratios......this has worked very well and even seems more laid back. I find I am more patient waiting for clear set ups and then working the trade versus frequent scalping activity intraday.

At what point will NT7 ever be able to access from DTN/Kinetic the 30 days of BID/ASK historical data provided like TradeVec, Investor RT, or MarketDelta.com? This is a HUGE stumbling block for Ninjatrader at this time........not really even worth messing around with BID/ASK data from DTN/Kinetic if I can't easily pull up 30 days of historical lookback imo. BTW, MultiCharts is going to start looking at building up a Cumulative Delta capability....we will see how they do with this opportunity.

Trade Expo was flat as usual for the last few years (since 2007) since the 2008 market blowout. The one good addition to the show was MultiCharts who were showing their new DOM and multi-brokerage acct linking. I had some long discussions with the MC crew and they did say they would be willing to start some work to add Cumulative Delta (bid/ask differential) at least to the capability currently present in NT7 (with the GomCD). They also admitted it would take some time and considerable effort to ever get to the full Cumulative Delta capability we now have with Investor RT Pro (connected to ONLY DTN.IQ feed), which is 30 days lookback of historical bid/ask data. I had a great 3 days in Vegas with my Cumulative Delta based traders gathering as we worked as a team on Trade Intensity, Order Book Delta, Delta Volume/Total Volume percentage ratios, "Accordion" dynamic position trading, etc. With several great programmers and many good traders it really was a very positive and productive gathering. Looking forward to a follow up Cumulative Delta based traders gathering in March in Austin, TX. For "local" food I had my group try out one of my favorites in Vegas......."Paymon's" http://www.paymons.com/med_main.html

The Las Vegas Online Trade Expo kicks off today......... The Traders Expo Las Vegas The FulcrumTrader Group has a get together of Momentum/Cumulative Delta Volume based traders that will be out at my place in Vegas the 18th to 20th of November. We will have an informal get together for any traders that want to show up and "talk shop" at Caesars Palace Wednesday night at 7:00 pm (come join us tonight at the SHADOW BAR in Caesars Palace..... Caesars Nightlife Shadow a Bar at Caesars Palace ). If anyone wants to get a hold of me with questions contact my email here for get together details: info@fulcrumtrader.com

Here was an Live Market informational webinar I did showing some Momentum Signals set ups while discussing the use of Cumulative Delta....... Market Perspective | FulcrumTrader