Z_trade

well, the idea of using Parabolic SAR comes from one of the trading books that describes trade setup based on bunch of moving averages crossovers and an SAR as a filter and stop signal. To answer your question, I don’t really know the answer yet, as I just began the research, but I always have mental problem with exists, so I m trying to implement some sort of mechanical way to close the trade. Usually, in your *flip* trade setup I would partially close on the out of range extreme $tick reading or a couple of ticks below/high previously significant high/resistance or low/support level

Looking for the simple way to make an exit as clearly defined as possible, I am testing the Parabolic SAR with default setting. The option that it can be easily incorporated into trading software as a trailing exit/stop gives the choice of *set the trade and go away*. On the chart below, the red dots are Parabolic SAR (0.02, 0.2). The entry was obvious after the market showed the potential momentum to the upside; restatement inside the outer bands to the KC (100,1) and CCI cross -100 from the below. The red arrows demonstrate the difference between exits by the CCI +100 cross and the SAR stop.

Walterw, thank you for an excellent thread of simplifying an idea of support/resistance momentum switch. It can be easily transferred to the check list for entry and possible mechanical strategy. I am following this thread for a while, though I trade exclusively mini Dow, I have made some adjustments for the KC settings, so here is 55 YM chart and the setup is – Keltner Channels 100, 1 and 100, 2.5 CCI 14 with alert levels -200, -100, 0, +100, +200 EMA 34 (hlc/3) So far I have several rules for the long signal /reverse for short/ and still fine tuning 1. Market must go outside the KC (100;2.5); longer it stay there, stronger the move 2. Market should return inside the bands and than make a new high. 3. Market should retrace to the KC (100;1) 4. Entry on the CCI(14) cross -100 from the below From my little observation, conservative flip entry on the CCI crossing zero line, in this scenario, almost identical to the bar close on the right side of EMA.

idaxtrader, I marked your chart to illustrate pretty simple concept. Price revisited supply area where market has spent some time on the way down. Short entry can be taken on the very next candle after narrow range low volume green /up/ candle.

mkp14 Looking for confirmation signal from two momentum indicators on your 55t chart seems unreasonable for me. They repeat themselves and you probably need something with different nature. The TTM and moving averages combo also have similar value as a trend definition. Removing the lines and using any kind of channel will bring a visual clue for the key area.

Try StockFetcher.com - Stock Screening and Stock Pattern Tools

Brownsfan019, that is absolutely correct. R.W. Arms explained the core idea behind Equivolume and his analysis heavily relied on volume and supply/demand level; illustrations show only boxes to simplify methodology. His plan is to divide market not by minutes but shares. The implementation of volume into the candle will provide an excellent visual advantage for pattern confirmation.

I think one of the best way to incorporate volume and candles is to use Equivolume chart, though there are not many software packages to support plotting this special type of candles. And here is a most comprehensive guide on how to trade equivolume by R.W. Arms. Arms Richard - Trading with Equivolume.pdf

try Multicharts, its pretty much the same TS but eats any feeds and does not required any subscription.

I was trying to make $TRIN easy to read and I think one of the useful way is to place Directional Movement and reverse DI+ and DI- color, so you will see overall trend by looking to the DI lines. If its too squeaky adjust the numbers.

some of the general rules for VSA : up bars with excessive volume = weakness down bars with excessive volume = strength up bar with low volume means mark-down can begin (time to short) down bar with low volume means mark-up can begin (go long) down bars, narrow spread (diff between H & L), low vol = bullish up bars, low vol, near resistance = bearish wide spread, high vol, near trend line = expect trend line break small spread, small vol, near trend line = expect trend line bounce

Java link for Hotcomm broadcast would be much appreciated

Well, I have to agree with what Woodie says - there no difference in trading futures/stock and sell naked options...

Data providers use deferent algorithm to calculate ticks. eSignal and TS offer real time calculation, though CME has recently changed the ticks computation. IB provides snapshot 1/6 second.

eSignal .efs study attached BidAskVolume.rar

Tradestation data feed overall much better now than 2 years ago and very close to eSignal data, but still lugging compare to IB. To compare data feeds from variety of providers - get a trial TS and use OwnData software to put data all together and feed trade station. It is possible to evaluate data in real time tick by tick.

YM 2 min chart claster area. High probability trade - Pivot Point, VAL, price symmetry and bid/ask on the wide low candle. Many thanks to SoulTrader for the concept.

...several trading methods as a summary / shared by Nqoos and Enthios/: Category 1 Trading Methods For Market Profile Only trade in the direction of the trend (Trend is determined by a rising or falling Point Of Control/POC) Trade setup #1a: In a down trending market, when the current session opens below the previous day’s Value Area/VA enter a short trade at the previous day’s lower VA and again at the previous day’s POC/HVL placing a protective stop for both trades 1.5 points above the previous day’s upper VA. Trade setup #1b: In an up trending market, when the current session opens above the previous day’s VA enter a long trade at the previous day’s upper VA and again at the previous day’s POC/HVL placing a protective stop for both trades 1.5 points below the previous day’s lower VA Trade setup #2a: In a down trending market, when the current session opens within the previous VA enter a short trade at the upper VA placing a stop 1.5 points above the Day Before Yesterday’s/DBY POC or High Volume Level/HVL (the open price must be at least 2 points below the previous days upper VA) Trade setup #2b: In an up trending market, when the current session opens within the previous days VA enter a long trade at the lower VA placing a stop 1.5 points below the DBY’s POC/HVL (the open price must be at least 2 points above the previous days lower VA) Trade setup #3a: In a down trending market, when the current session opens above the previous days upper VA and below the DBY’s lower VA enter a short trade at the DBY’s lower VA and again at the DBY’s HVL placing a stop for both trades 1.5 points above the DBY’s upper VA (if stopped out on this setup and price remains above the stop level, change directional bias for all category 2 trade setups for the remainder of the day) Trade setup #3b: In an up trending market, when the current session opens below the previous days lower VA and above the DBY’s upper VA enter a long trade at the DBY’s upper VA and again at the DBY’s HVL placing a stop for both trades 1.5 points below the DBY’s lower VA (if stopped out on this setup and price remains below the stop level, change directional bias for all category 2 trade setups for the remainder of the day) Trade setup #4a: In a down trending market, when the current session opens above the DBY’s lower VA and below the DBY’s POC enter a short trade at the DBY’s POC and again at the DBY’s upper VA placing a stop 1.5 points abve the DBY’s High Of the Day/HOD (if stopped out on this setup and price remains above the stop level, change directional bias for all category 2 trade setups for the remainder of the day) Trade setup #4b: In an up trending market, when the current session opens below the DBY’s upper VA and above the DBY’s POC enter a long trade at the DBY’s POC and again at the DBY’s lower VA placing a stop 1.5 points below the DBY’s Low Of the Day/LOD (if stopped out on this setup and price remains below the stop level, change directional bias for all category 2 trade setups for the remainder of the day) Profit targets for all trades should be in consideration of the risk of each respective trade and should be placed in consideration of the previous days POC, VA or HVL Category 2 Trading Methods For Market Profile Category 2 trades are based off the current sessions VA, HVL and POC with profit targets of approximately 2 points (they will generally setup after steps 1 and 2 have occurred in the market profile’s development) When a Category 2 trade’s entrance level matches up with a previous days HVL It is referred to as a Category 2+ trade (category 2+ trades are generally good for 3 or more points) Step 1 being vertical movement of price and step 2 being the capping of step 1 Step 1 will generally takes place during the Initial Balance/IB period of the day (the first 60 minutes) Step 2 often occurs during the IB period as well Step 3 is when the market begins to move more in a horizontal direction than vertical direction and the bell curve begins to take shape Step 4 is when the bell curve is becoming fully developed and its POC tries to drift towards the center of the IB, if it is not already in the center (occasionally steps 3 or 4 do not fully develop and the market enters step 1 again, this is known as minus development) Minus development is very helpful in showing the direction of the market