daVinciLite

It has been around for a while. The summation index is long term and the oscillator below it is short term. It is an advanced way of looking at breadth: advancing shares minus declining shares. A lot of big money looks at breadth to gage the market. I learned about it in "The Secret Science of Price and Volume" by Timothy Ord DVL

Anyone use McClellan oscillator for swing trades? It had a very strong buy at the recent bottom. DVL

You may also enjoy "What If?: The Challenge of Self-Realization" by Eldon Taylor. Taylor has a lot of other books about the mind. This stuff is basic neurology with a psychological spin. I used a basic form of biofeedback 20 years ago to calm my nerves during basketball games. Rande Howell is on the right track. Just ordered the book. DVL

I read your entire thread. Your risk strategy now makes perfect sense to me. Thanks for sharing it. It is rare to ever learn anything of value on a forum. DVL

Steidlmayer's "141 West Jackson" pdf is floating around somewhere. He is trying to turn Market Profile into a mechanical system, which I do not agree with.

Yea I heard about the '80% rule' from. the trading zone. at a free webinar. I started using intra day value area lines after that. Yesterdays ES range was contained by the previous days value area. clmacdougall, Trading context is trading the probabilities.

Well you have huge hedge funds like Renaissance (not sure of spelling) that have made money for 25 years using mechanical systems. So maybe I was being too general. But I am sure they have to change their systems as the market changes. I was talking about Steidlmayer. Most people are out there trading mechanically and loosing money. Just stating that fact. If the 80% Rule is that simple, then other traders would pick up on it and that edge would be gone. I have the pdf of 141 West Jackson street and will read it in a few months.

Actually meant to say that the shorts from yesterday have just been squeezed out. Shorts from a few days back are still in the market and are defending this area.

Looks like the sellers from yesterday are holding their ground. May not get to 1335 today. They need to cover - which they have not done yet. Thanks for the response. I have no problems in adding to a looser if you have a reason. I have not done it yet because my capital base is to small right now.

Looks like todays low is in at 1325.75. That was yesterdays high and a key volume point of control. Long was a no brainer there. 1335.50 looks like a good short. It is the 2-17-11 high. Hopefully we will get to 1335 late in the day. Would not like to fade this strong market early in the day.

I stand corrected. Looks like you are going one to one now. That 10% number was in the beginning of your posts.

emg, I appreciate you tenacity of posting your trades here for everyone to see. I am tempted to do the same. May I try to explain why many people here have expressed concern for you risk management strategy? If you win nine out of ten times, that would be a wonderful win rate of 90%. But the problem is with the other 10%. If you win nine times you only make nine points, but if you loose just once you will give back all of your winnings and then some - as much as 10% of your account in your case. Can you see that the math is against you? You have taught me that risk/reward is all we traders have and can be the most important thing in trading.

Keep in mind that Steidlmayer tried (and is still trying) to make Market Profile into a mechanical system. The problem with that endeavor is that the markets are not mechanical. The failure rate of traders proves that point. On the other hand Dalton's "Markets in Profile" admits this fact and tries to help you with the current context of the market. Of course that makes trading harder since you have to increase your understanding. Most people don't want to bother with that.

Updated link: http://www.cmegroup.com/education/interactive/marketprofile/handbook.pdf

I just read Dr. Ari Kiev’s book “The Psychology of Risk” for a second time. It really was a game changer for me. A little understanding goes a long way. I read both of Mark Douglas’ books. They were not practical for me. The books was enjoyable but did little to help my trading. Also read Brett Steenbarger’s “Enhancing Trader Performance.” It had great info on tracking your performance, but not much “ready to use” info there to deal with psychological challenges. I also followed his TraderFeeder blog when it was updated. It seamed like a lot of psychological ‘gobbly gook’ - just my opinion. He has some nice technical indicators though. Good Luck dVL

Hello, Please add me back to The Race. I posted my account info 5-10-10. I have not traded since that time. Thanks dVL

Hello, I will like to enter The Race. $50,000 will be enough for me. It will be good to be accountable to someone else. dVL Got to want it more than the other guy.