PrymeTyme

Some thoughts on a potentional play on the actual daily situation and how i would plan the game, well i would look for a long entry on or near the midpoint .. where we have a higher low accompanied with increased vol. and we hold this level.. besides that we have broken out of the hinge , etc... Lets pretend that situation occured! (a test of the midpoint) and iam about to enter along position so now only a few scenarios can happen .. and i have a plan on how to react to them .. First and foremost my SL could been hit! . now on to scenario 1 (s1) we could breakout the top of the highs wich is also a support line and we might could see a reaction on the midpoint of the upper range (left) then i watch how price reacts on the retest of the broken line and either stay in or close the trade or move SL to BE.. scenaio 2 (S2) price could bounce off the line . then i watch how price reacts on the midpoint and either let it open or close it out scenario 3 (S3) we might breakdown , we might bounce and see a retest of broken midpoint if the action is right , i close out the trade and might reverse the position .. but that reverse depends if the reverse position is in lieu with overall market situation .. like trend , strenght or weakness etc.. else just close out the trade, thats how i plan out trades before i even enter them.. leaving no room to get caught up in a situation where i dont know how to act.. .. i must confess that i just recently startet planing trades this way .. so its still new to me , and a construct i work on.. thru expirience etc.. cheers

an analysis on how to spot opportunitys on foresight drawn key levels on this H4 chart of NQ i drew in all meaningfull levels wich may add to a story and to help to spot opportunitys on levels where a reaction might take place i draw in support and resistance levels ,aswell as demand and supply lines ,midpoints (note i higlighted the ones where price reacted and i will zoom in on those areas to see what price did and how to position yourself) 1.) lets start with point 1 where price reacted on 2 midpoinst of a rectangle lets zoom in on that right to the m1 TF , big leap heh! waht we see here is an almost picture perfect wyckoff accumulation phase where we have a premilinary support a selling climax right @ the lower midpoint line wich acts as support and gets tested several times , thenwe have an evidence of a shakeout wich finds support on the H4 demand line wich allready gives us an opportunity A to go long. the next opportunity comes just slightly above the reistance level of the small acc. range wich looks like absorbtion and sure enough it was absobtion as price poped off on increasing vol. 2.) on the same picture we see that price reacts on the upper midpoint line it first reacts on 1. acting as resistance , 2.price eventually breaks abovebut buyers fail to follow along and we make a lower highcompared to the high on the left, price comes back below the midpoint and on the next rallie 3. the midpoint holdscreating a lower high and we drop with an opportunity to go short at c 3.) now u might notice that on H4 price moves thru the upper midpoint where we could have gone short on previous point 2 .. like thru butter . letting u think that this level gave no opportunity to take action.. wel then lets zoom in again on that point and look waht we have here first we are ina n uptrend , price finds some reistance , but breaks it and moves torwards our midpoint where it reacts 1 ! we move down and find support and previous resitance 2 , forming a range where we could draw in another midpoint .. we do make a higher low but price again reacts on the midpoint wich act as resistance.. but the second higher low .. reacts on our freshly drawn midpoint . given us and opportnity to go long at A .. price drifts thru resistance quite unspectacular . then eventually tests the broken midpoint/resistance.. wich holds and gives us another opportunity on b to go long .. on that springboard! cool huh? , at least two opprtunitys .. where on first sight (H4) it looked like u may could miss a train! 4.) now to the most recent action , we notice that we rest at an supplyline , price found support at 2701ish and resistance just shy a midpoint .. lets zoom in on m30 this time .. just to show you that u can find opportunitys on all tfs .. like on point 1 where price reacted on or near the midpoint now lets get on and look what story we have thus far on m30 i could draw in another trend channel a rectangle/midpoint S/R .. where one can spot opportunitys after and uptrend containned between the demand and supply line of the channel , we drift to the right out of the channel and a retest of the demand line holds 2. price attempts another rallie/test and finds resistance @ about 2722ish , however price also finds support @ the supply line of H4 price drifts along this line for some time and now lets zoom in on M1 i drew 2 rectangles as the first one 1 doesnt quite look like a range more of a sloppy channel.. but nevertheless, price conatined witin that range .. the smaller rectangle 2. can also work as midpoint as there is alot of trading going on we see that on 3 price made a lower high .. however price found support at the midpoint of 1 and attempts another rallie , to point 4 but again no buying interrest ie. no follow thru , price moves back down and again finds support at the midpoint of 1, the small rallie that occurs stalls at the supplyline of H4 and price starts a small downtrend conatined within the small channel , u can see that price also reacts on the midpoint 2 now on point 5 we notice a shortening of the downward thrust ie we dont come close to the oversold line and we form a hinge where u can park a long order at A , price breaksout the hinge and finds resistance again at the H4 supplyline , hover price reacts on the midpoint 1, giving u another long opportunity B price moves thru resistance and forms a higher high ,price retests supply line and holds C another opportunity and the last opportunity of the day occurs at D where price tests broken resistance .. cheers

If sometihng literally screams at you to take it .. then u better do !!! if all stars align .. as seen on FDAX 15min today ... 1st. Uptrend 2nd. bigger upbars+vol = buying pressure ie strenght 3rd. weak reactions 4th. resistance gets support , wich breaks into range again but support holds. 5th volume pics up on the rallie 6th volume and bars decrease on reaction and tests the midpoint of the range ,wich holds thus creates a higher low ,market also rallied back up to close above the demand line,forming a pinbar IE. 6 reasons to risk a long entry above the high of the PinBar

Funny since i read DBs work/posts i focus on them even more ! the markert does respect them (valuePoints) quite frequently ... different strokes for different folks

Short session on EU spot FX today i left the lines on this chart as i drew it .. as i draw them on the fly! (all trades taken with market orders) 1-2 After a sloppy long entry on NO real reaction i reversed the position on the break of SL 4. went short as a Lower High was forming market didnt really react in my favour looked like it was forming a compression (hinge) however waht was in my favour was the lower high and another lower high within the small compression and the reactions bars where bigger then the rallies within the formation so i kept the position open.. but was cautions and ready for a breakout eiher way then on the lows of the compression as soon as is saw the rally breaking the previous bar high i got out! as the market wasent really acting in my favour and we have still an uptrend and signs of strenght in the background so not in favour of my small short scalp as soon as the reaction from the small downtrend line was broken i enter a long position wich reacted immeditaley in my favour and i let it ride .. btw i just recently saw that the upward trendline was drawn sloppy .. but nevertheless i got out wen the bar had like 5 seconds till the close and was below the line... (the sloppy TLs where caused by a change pf period from1min to min5 and back! )

Some interresting stuff: William Greenspan on Daytrading .. and as u can see by the presentation its probably Pre-HFT [ame=http://www.youtube.com/watch?v=TpotJYahINk&feature=related]Legendary floor trader William Greenspan - Day Trading Made Simple - YouTube[/ame] here a floor man of modern times: [ame=http://www.youtube.com/watch?v=5fNnt3s29GM&feature=relmfu]Ben Lichtenstein @tradersaudio and Matt Davio aka @misstrade talk Sounds of the PIT Trading - YouTube[/ame] some nice videos and webinars (free) from a futures trader/Scalper Chat Archive | FuturesTrader71 nice thread and read .. (Maverick) Forums - TAPE READING (chat room cont.)

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HFT is not scalping HFT is a broad term used for many different tactics.algos and procedures HFT dont trade for tick movements... They go for example for statistical arbs wich will occure in split seconds Or go for rebate trading ie. Adding liquidity For flashing and internalization but i guess only on equitys Trading inside the bid and ask spread etc. Algos against algos And so forth Not scalping for ticks

Oh. Yea i got one I was trading Eur/Usd and had a long position open And i wanted to close the trade wich didnt played out But instead of closing the trade i entered a short position! And as i realized the mistake and acted under a shock and hurried To get out of that short , guess what? I entered another long position !!! As soon as i realized that i made the same mistake again , i was backing off The screen abit took a deep breath and closed those 3 positions. That WTF moment , taught me to keep a cool head even if u made a mistake

EU London Session 1min Didnt took the trades .. just mentally played the trading game and analyzed the action ahh, how i love it! ... some notes to the trades ,: Look at the springboard @Midpoint from overnight session the secondary retest of support and the reaction off the midpoint from the second range neverheless price failed yet again to make a new high.. so .. my 3rd trade prob wont hold.. eventhou we have signs of strenght in the background

HI i cant say that Scalping as how i mean it .. and that is trading based on the DOM , (no charts) isnt Dead.. and i cant even say if it has changed! s i first looked into scaslping via DOM .. like 1 or 2 years ago... and i started to read about TapeReading and Reading the DOM etc... and i say i have understood how markets work (mechanics) and therfore i can read the action on the DOM and position myself on the market on the most favourable way... so it is not dead.. thats the same as saying trading is dead! lol , ie .. if scalping is dead then trading is dead.. the mechanics didnt changed.. markets move because of the same principles they moved 100 years ago.. maye it got faster ? but then what do i know .. i didnt traded 100 years ago.. just an example... first u need to know where to do business @ ie. wich level.. (and that doesent mean that price reacts on thiose levels) .. but u need a reference point , a point on wich u can rely your market analysis on.. else u are trying to see something within a dark room.. u know? lets say price moves torwards yesterdays high.. well only two things can happen.. it either breaks above or rejects .. right ? now u just have to look HOW price moves torwards that level and HOW it reacts there.. and position yourself accordingly.. if it looks like it may will breakout then go long.. but then again.. it may just breaks out 2 ticks.. and reverses.. but that is not in your hands. u can react to that quick and get out at BE or 1 tick profit or a lil loss.. but u have to react! u know its different if u open a position or maintain an open one! ie.. if u have opened one.. does the market react in the favour of your position? if so u need to watch teh momentum and let it opne till tehre is a change in behaviour/momentum.. if not .. get out immediately as u dont want to be exposed to the market for to long or watch the action and if the current action is hazardous to your posi ... get ot.. else let it open.. does the market even goes agianst your initial position? well... then there is only one choice ... get out! ... scalping aint dead.. ... its a skill well worth learning.. as reading the market on its pulse.. will do any trader good! i heard of trading floors/firms.. wich let the freshmen and newbie traders first stare them on the DOM for a full month before letting them..even consider to look or even trade based on charts .. etc..

OK Here is my Bullish analysis of GLD .... Weekly chart 1 : Well first off all we are still in an uptrend! the stride isnt broken , however we do form a range, wich is actually more of a compression! .. but is it absorbtion or distribution? we dont know yet! but, some assumptions can be made.. lets take a closer look at the weekly chart: we see that after a steep upmove price came to a halt and reversed , forming a selling climax , wich is accompanied by a automatic reaction and a secondary test on low/dimnishing volume! confirming the SC. we do also note that there is a form of change in behaviour in progress wich starts on the secondary test (ST) first the secondary test dips below the SC but on low volume implyieng no selling pressure (interrest) below that level! on the rallie back to the high of the AR .. volume increseases! then yet again on the following downswing the volume again tends to shrink and the whole move to the next Low (Test) took 3 months! .. ie not a steep move! now we arrived at a low wich tests support again , and volume increases on this low what we notice is that on the first 3 bars the volume is highest .. and all three bars close above januarys close (ST) there is deffenetly some buying on the lows. lets look at the daily: we se again the volume on the selling climax compared to the volume on the secondary test! .. wich clearly shouts NO selling pressure! NOW that Volume increased on the level of support and near the low of jan. but we are even holding the level and stay above the jan. low we can speak of absorbtion of weak supply (who sells at support!?!) and therfore a change of supply from weak hands to strong hands! or demand = good quality we make a series of higher lows and we have evidence of a sign of strenght after the bagholding .. resulting in a wide spread upbar closing on its high (no follow thru thou) therfore we have recent bullish activity + signs of change in behaviour(within the range)+ uptrend in the background .. therfore mini me is bullish! BTW i do have a game plan for both scenarios (bullish/bearish) but depends on HOW price reaches the level of interrest and HOW price acts at those levels.. cheers

Hi DB well , yea i study wyckoff and vsa since two years , what i meant with ,i use neither of it .. was that probably due to the multiple spinoffs ,adaptions and variations u can find on the internet forums, ebooks,articles,seminars(videos), etc.. i probably use a mashed up kinda methology .. like if SMI ,Hank Pruden , Tom Williams, Gary Dayton , and Richard d Wyckoff ,etc had a baby ... well thats what i analyze/trade :rofl: i will analyze your charts from a bullish biased POV a lil later, as its getting late over here in europe .. i will try to leave specific non Wyckoffian terms out off that analysis and instead just write about the action (price volume wise) .. like for example instead of "spring" i will write something like.. price traded below the support level on high volume just to rallie back and close on its high and above support , indicating buyers stepped up and absorbed the selling wich results in an increase of demand at this level.. .. etc... or something like that till then all the best

HI DBP thnx for your input! , well i do neither use wyckoff or vsa , i do judge the market by its own action! .. well the glosarry i use might not be Wyckoffian .. but that doesent change the chart per se ,.. anyhow .. will move to the VSA Forum to keep your forum clean of non wyckoffian jargon cheers

Some Gold Analysis , any comments welcome Overal we are still neutral to bearish on this weekly chart we see that we have left the upward trend channel while within the uptrend we saw increasing volume on rallies and decline vol. on reactions wich indeed is a good sign for a steady upmove (hilighted orange) however the uptrend came to an halt .. with a climactic action on overbought level we have a automatic reaction followed by a retest of the buying climax wich confirms the climax , the retest was below and near the overbought line.. then we have a sideways market wich never came anywheer near the high of the climax and eventually left the channel to the left.. forming a hinge @ support and below the trend channel.. lets zoom in : we see tha buying climax followed by the automatic reaction wich ends with a sort of selling climax (high vol) and forms a spring , reaction ie. the following rallie however is on declining vol and we gain no real ground to teh upside.. price stops just slightly above the overbought level and confirms our Buying climax , making this upswing our secondary test , price moves back down the the stopping action (AR) and creates a springboard note how price moved back down.. one big downbar on increasing vol. however level held.. and we have a rallie again to teh top of the secondary test price halts again but this time within the trendchannel.. and forms another lower high, then price just plunges along and eventually left the trend channel unspectaculary by breaking the demandline.. now we form a hinge and within that hinge we see a bar with ultra high vol but small spread and it makes no new ground .. (effort vs. result) we sit at a supportish level... all in all we see bearish action accross the board lets look at the daily : we see the spring and springboard and there followed reactions.. ie. price rallied but now on the hinge we have nowhere near the same reaction as on the springs even on high volume.. price doesnt advance .. no , it forms a hinge and that below the mean value price within the range ... also note that the action within the range looks like supply is off better quality then demand.. as we see bigger downbars and downs swings accompanied by good/high vol. .. (change in behaviour?) .. as opposed to the rallie/correction/Vol in the uptrend.. lets zoom in on the hinge: well we see a big upbar on average vol.. from support this however should be considered as a redflag for bears.. but no real follow thru to the upside,. then we see volume getting high . ie alot of activity.. but price just grinds its way up but we still see higher highs and lows asnwell as closes of the bars.. wich could imply absorbtion... but what makes this actionrather stuffing then absorbtion.. is the fact.. that price didnt breakout! .. we have seen a decline again... then we see high volume reaction off the lows a springboard action.. wich will be teh last stand for teh bulls ,, if that level breaks .. its going south! so all in all.. it does look bearish.. we have some evidence of buying in the hinge but opposed by stuffing! and overall a weak scenery.. therfore iam bearish on gold. wadda ya think?

hmmm , sounds like collective unconscious ... but does that really help someone out there ? all the gibberish ? in order that someone might gets lead into the direction of trading in the flow.. someone has to first experience it! in order to know! but how can he achieve it .. is totally up to his individual personality... no one can pin point the right path for that person.. maybe show alternative ways or doors.. but the person has to step up on its own.. and therefore the person has to understand what points and doors are the right ones for him.. and trust his innerbelief.. wich door might lead him to his path.. cheers

Most Interresting Thread in Years ! Thank You Well i can only speak for my own exprience , wether or not i was trading *in the zone* or some sort of subconcious state .. or what ever u wanna call it.. but only when trading purely with the DOM alone. i mean u cant get any closer to the markets then via the DOM (electronicaly) ... and if u watch the DOM and its actions for a very long time.. and start to recognize what drives the market.. (i mean u need a basic understanding about supply/demand,Cause and Effect.. effort vs. result ,etc...) and i dont mean patterns or something.. just the markets action... or price action if u will.. if u know where to look at .. and what to look out for... u will get closer to the `zone` each time.. till u trade in it! .. trust me it does happen... like someone said... it is like driving a bike or car.. where u dont have to analyse all data etc.. and think about every move ... but the markets arent black or white.. so its more like riding a bike with ever changing conditions.. like different concrete , be it dirt,mud,snow,ice.. up or downhill... but if u drive these roads long enough .. you know instinctively how to react.. to each condition... as u have gained expereince over time.. and the thing about .. the emotions .. like , fear and hope... jut means u dont know what will happen next.. cause u dont know how to read the market actions and judge the market.. if u know how to read it.. u will know if you should get out of a position.. or adapt to the new condition... remember the ones that hope simply dont know! (what doesent mean i know where the market heads next ) but i know if the current action is still in favour of my position or at least supports it... i mean anything can happen.. but u will notice when u should take a loss.. or even reverse a position.. if u observe the market and if the action is still in favour of your position.. etc. and u can filter the `noise` from the important trades.. i mean if u see prints of 1 contract and a print of 100 contract... what is more significant? . and what adds to a story? sorry for my bad english.. hope u guys get .. anyhow here is a nice quote ... the surfing plan The best explanation of a plan is "the surfer" who goes surfing. Goes down to the sea. Checks the weather conditions. Is the surf up?. Is the breeze on-shore or off-shore?. If the conditions are right, jumps on the board and paddles out 300 meters. And waits. Waits for the right wave. There are many waves. The key is to pick the right wave. Don't want to pick one too soon or too late. The choice of wave comes from seasoned experience. Not a surfing plan. A surfer does not go out surfing with a surfing plan in mind. The conditions of the moment on the day will dictate the play. Depending on the conditions, what was a good wave yesterday might well be a poor wave today.

well its not that easy to tell your exactly what to do and why or where , as the markets dont act exactly the same way over and over .. and u have to adapt to the current situation .. etc.. it cant be simply described within some sentences .. aswell as my POV on the markets and how i approach them arent replicaple to you or others as each on there own has taken a different way , u need to dedicate alot of time and ask the right questions to yourself and keep looking for answers.. ie answering them also for yourself... i set my SL and TP based on technicals ,if i swing or position trade , but the TP is temporary ie. if there are signs of strenght behind the current move and its more likely to break thru my TP .. i hold the position till the next Trouble area approaches .. etc.. so basically i stay in the position as long as the market lets me... however i put the SL as soon as possible @ BE ... so in the end i dont care if BE gets hit.. the markets will be there forever... and if iam wrong in first place.. i get out of the market with a loss.. but thats ok.. as the longterm results speak for themselve for scalping its a different story... but there u need momentum behind a move and gauge when it dries up .. and get out imediately.. however if iam in a position and the market stalls.. or simply isnt moving.. i get out at BE or 1-2 ticks.. loss... as i dont want to be exposed to the market for too long when scalping no i dont use any tools... but price and volume

Agree , except instead to understand a system u need to understand the market! Lets say u are. Long what u should have done beforehand , is determine areas where your position could get in trouble like. Swing highs , resistance or supply levels etc. Then you need to watch how price moves there and how it reacts at those areas. If the action is critical to your initial position or you see clearly a change in behaviour , get out

Hi Simply observing the DOM , get a feel for the market or nsync. Watch what the market wants (path of least resistance) Selling or buying pressure (wich is dominant) Watch important levels and how price moves there and how it reacts( ydh,ydc,ydl,s/r,swl,swh,high vol areas low vol areas , recent heavy activity) Get in , if market reacts in the favour of my position let it run till momentum dries up Else get out dont be exposed to the market for to long , either take loss or BE Watch out for games played ! Only trade the obvious !

For Both Quaterly and at the end of the year SPX: 1157.59 INDU: 10998.40 COMPX: 2495.70 good luck all...

HI . well if it would be an easy task to recognize reversals , we all would be filthy rich in no time .. to answer your question shortly .. we cant recognize it .. but what we can do is participate . and let the market decide if we where correct or not .. so lets say price moves in a channel/congestion for several days now . and we are moving towards the upper line (resistance) .. and as we move closley to he line/area we see that the volume starts to decline also we see a shortening of the thrusts and the spraeds get smaller .. so thats our first sign of weakness .. where we could say that it may bounce off the reistance .. then as we reach the resistance we see a smal spread bar on low volume Ie(no demand) .. we could short it at the break of the bars low .. .. its that simple just participate .. and try to add the odds in your favour... by reading and understanding the market ... as if the price actually reverses or stays at the resistance level .. well this can only the bars and the corresponding volume tell u ... but u really dont know if it bounces off (reverses) .. or stays at the level for sometime.. u just cant predict that , that easy.. if for example u see an upthrust on high volume penetrating the resistance.. then its more likely that it will bounce off.. but then again if the next bar .. is an upbar .. ie.. we see no folllow thru .. then price may stay on that level for some time to come... (absorbtion) or the spreads get smaler the volume starts to dry out .. closes start to cluster.. then there is no participation at least from the big players.. wich could lead to a rollover... and so on.. as u can see it is a mather of reading the charts , and they c vary heavily .. as nothing is black and white ... .. but we have to participate ... or else we are just standing on the sidelines... cheerz

Hi Don well the climactic action we saw could also mean that locked in Traders who where short SVU , wanted to get out ab Breakeven.. so they added to demand .. wich caused the two bar climactic action.. but nevertheless we didnt see signs of strenght after the climactic action , aka the market made no real progress .. and the small spread down bar .. closing in the middle on low volume .. and the close is even near the previous up bar .. shows that there is no real buying power present... you wrote that if the 2nd bar (of the climactic action) is an bar on high volume closing on its highs would suggest supply is present . but thats not correct .. supply is present if the bar closes off the highs .. aka supply swaming demand.. or we know if the high volume conatined more selling when the next bar would be a down bar .. a test bar on low volume would be a bar .. wich dips into an area where previoulsy was high volume and supply present .. we have to read the whole story and in this case .. the bar u tagged as a test?? is actually no real test bar .. as the bar is rather small spread .. closing in the middle... so its actually telling em that there was literraly no trading going on .. neither up nor down.. but in context . as we have ssen a climactic action kinda .. and we see no further progress .. or real signs of tests.. this bar shows me that the market wich is weak.. is still a weak one.. and the SM is not participating in an upmove.... as u can see on SVU today .. it dropped on high volume like a stone... remeber one bar on its own doesent turn a market.. its just a word in a big book.. we have to read the whole book .. to interpret or understand its meaning.. take care

Heya Don sorry for taking so long to respond .. iam busy atm.. yea mate .. vsa and wyckoff is the shiznit keep reading all material available and practice ,practice ,practice-- about SVU Picture is an update

hi drushi yea my setup wasent the best to take a trade off.. but we need to see demand comin in to change a bear market into a bull market.. and the raection after the climactic action is weak .. please check weekly chart i comented on.. cheerz