carltonp

That is brilliant mate. You've given me so much food for thought. Excellent. Josh, while I'm here I have question that you might be able to help me with, or I might just submit a new thread altogether. Anyway, part of my system is observing the 30 Dow components to help determine a reversal or a pullback on the two minute time interval. Almost without failure my system will alert me to when run on the YM is either about pullback and continue in the direction from where it came, or reverse entirely. Either way the system will let me know when the move has slowed down. The question is, is it common for YM to pullback/reverse when all 30 stocks have either been overbought or oversold? This is happening with such regularity that I don't think its just luck. The reason I have submitted such this thread is because my system, as it stands won't, quite often fails to assist me determining if the slowdown is a simple pullback followed by a continuation or a complete reversal. The main reason why the system has proved profitable is because I exit as soon as I'm wrong. I must say, I never believed it at first, but its so true when professionals say that you can have double the amount of losers to winners and still come out on top. Anyway, what do you think about my question? Cheers

XS, can you provide a link to that thread - sounds interesting. Cheers

Absolutely. Everything I've talked about is through Excel. I intend to take the IB Time and Sales data and have that fed into Excel. I will keep you posted on progress.

XS, I would love to work with you on a few ideas I have. I'm going to create a Excel formula to pump data into a Times and Sales window. The possibilities are endless once I create it. If its ok with you with you I will be picking your brains, and others here at TL, to comment on the new spreadsheet. Cheers

I working on your suggestions as I write this..... thanks dude

Brilliant, absolutely brilliant. That might sound dramatic but that strategy is great not just because its an excellent strategy but it more importantly it opens up so many other ideas in my head. Thanks man.

MarketMole / Brownsfan019, are you guys around. I have posted a snapshot of the Time and Sales for YM at the time that YM paused for over 4 seconds. The pause took place 09/08/11 at 11:12:14 to 11:12:20 Its this kind of thing that I need a strategy for my stagnation system, but I don't have the knowledge or experience to understand what is going on in T & S to make a judgement. If there is anybody out there that can assist with this one I'll provide more examples - and if you're able to share with me some good strategies I'll happily share with you my Excel spreadsheet with all the formulas (that's if you're interested in it). Cheers

Yes I've watched a number of videos, but none really have strategies with any depth. I'm putting together a video as you suggested... Cheers

You're 100% correct here. I think the only way to know if the pause has any significance is to do what 'brownsfan' suggested and watch the Tape.....

My apologies for the bad grammar......:doh:

You have made me soooo happy. Apart from a member called 'brownsfan' who kinda got I'm trying do, you are the only person that appears to truly understand what I'm trying to ahieve. I posted this exact thread word-for-word on other forums and no one gets it. So at last I can have a conversation with someone without having to go through every detail again and again. First, I appreciate your commnets, and at this stage there isn't any significance in a three second pause. The reason I introduced it into my trading because it stopped from going crazy watching price move up/down before I entered - I scalp. So initially I used the pause to give me a focus on when to watch the price. So, if the price paused for 3 or 4 seconds at 11000 I will be notifed with an alert. If after the pause the price moved to 11005 and then sat there for another four seconds I would be notified. After the second pause I would watch to see if the price moved in the direction of the OBV / Price of the majority of the stocks (remember by this time I already know which way the OBV/Price is going) I would enter. I going to continue, I just want to send this thread now, so that you know that I'm here. I've lots more I would like to talk with you about - please stick with me on this.....

Hello Traders, I wonder if you can help. I've spent the last few days trying to track down information on tape reading (time and sales) strategies. I searched the four corners of the internet and trying to find suitable information buth nothing. Just to prove to you how little information there is out there I found one site, http://www.priceactionroom.com, charging $1995 for a DVD called 'The Magic of Tape Reading'. This blew me away. I thought how can they justify that price tag? Then I thought, 'of course they can, they know there isn't anything out there on Tape Reading'. Don't get me wrong, the DVD might be the Holy Grail of Tape Reading, but I'm not ready to pay that kind of money until someone has reviewed it and gives it the thumbs up. I watched all of soultraders videos (there are good and they give you a taste, but no real meat on the bones). So if there is anyone here that can point me in the right direction, I'd appreciate it. Cheers guys/gals Carlton

Hello Traders, Does anyone know if Interactive Brokers provide data in the form of time and sales. I will call them in the morning and find out, however I was wondering if anyone knows the answer? Cheers Carlton

Hello Traders Can someone please recommend any good tape reading books? Cheers Carlton

Would you happen to know of any threads from traders that effectively use T & S as part of their trading? Cheers

Hi yes we did, and I am looking into T&S as a means of adapting my trading from using OBV or Trade Volume Index. Don't get me wrong I really appreciate the suggestion and as I just mentioned it is something I'm seriously looking into, however, I was just wondering if there were others that agree with you. Cheers

Traders, Still no comments. Do you find any benefit in knowing when a price has remained stagnant for a period of time, say 5 seconds? Is there a message in a price that has remained stationary for seconds that you guys use for your trading? Give me something :-)

Hello Traders, I have been working on trading strategy that I have been paper trading for a while. I will attempt to explain it in as much detail as I can - if I forget to add some crucial information let me know. Let me start by saying the overall trading style is based on comparative relative analysis. I'm going to first provide some of the detail in bullet point then elaborate. I'm trading YM. I am using the components of the Nasdaq 100 for comparative analysis. I use On Balance Volume and Advance / Decline of the 100 stocks mentioned above. I trade on 2 minute interval. I have programmed the stocks into Excel. Now I will explain how I use the information and Excel. As I'm sure you're aware at this stage that I use the 100 stocks to assess the likely direction of YM. The data from the stocks are fed into Excel. I have programmed Excel to compare the OBV values over two intervals - in this case two minutes. So, lets say the value of the OBV for a particular stock was 100 and the price was 20 at the end of one minute. Now, during the following minute Excel would compare the OBV and Price of the stock and if both OBV and Price were increasing for that particular stock Excel would add it to a table. Excel would do that for all 100 stocks individually and if say 85 of the 100 were increasing in both OBV and Price I would use that as indication as to where I think the YM might be going. I have used the same calculation that is used for the NYSE Tick for the 100 stocks. So at any time I can see how many stocks are trading on an uptick vs how many are trading on a down tick over a two minute period. Again, this is achieved by programming Excel to compare stocks trading on an uptick and downtick over a two minute interval. What is a little more tricky is programming Excel to alert me when the price of YM has remained stagnant for 3 seconds. I have no reason why I chose three seconds - it just seemed like a good number to make a decision if the stock has remained at a certain price level for three seconds or more. So that is what is set up, now for my style. If say 85 or more of the stocks are increasing in both OBV and Price there will be a pullback. Sometimes the pullback will turn into full reversal, but 8 - 10 times no matter how strong the move there will be some form of pullback/reversal. I won't actually place a trade on YM when I pullback is identified on the chart but I will only trade a pullback when the pullback is accompanied with an increase in OBV and Price on the stocks in my spreadsheet (to be honest I only use a chart for visual affect, not for actual trading) Now once I've decided that the pullback is in full affect as described above I wait to see at what price YM has remained stagnant and how many times it has remained stagnant at a certain price. Let me give you an example: Pullback is in full effect. OBV and Price on stocks are going in the direction of the pullback. YM has remained stagnant at say 11000 for three seconds. After three seconds, the price has moved in the direction of the pullback or the direction of the OBV on stocks and is now 11002 and stays a further three seconds at 11002. The price then moves to 11004. I will then place a trade at 11004. While all this is happening the direction of OBV and Price for the stocks are either moving in the direction of the pullback or the price of YM. My exits are far simpler, but we can get into that another time. I'm really sorry for the very long explanation but I think if I want decent feedback then I should provide as much information as possible. It has been suggested that I forget about charts completely I use T&S. I've never used T&S but will learn if more people suggest its the way to go. I'm sure there are aspects that I have missed, but just ask me any questions you like. I just need good honest feedback and suggestions. I look forward to hearing from you all. Cheers

That is so true. Thanks for responding...

Hi XS, thanks for responding. The main reason for the post was to get opinions on approaches when these situations occur. So putting this trade to one side for a moment, I would like to hear thoughts on what may be occuring when I price holds steady for say 5 seconds? Are the big players buying at that price? Something must be occuring while a price remains stagnant for 3 to 5 seconds. What are traders typically doing during this period of stagnation Cheers

Hello Gosu/Traders, First of all I would like to apologise as I got the times of the stagnant price wrong. Just to give more detail The price of YM remained at 11229 on 09/01/11 from 15:24:29 until 15:25:12. I have attached a snapshot of Interactive Brokers TWS that I was using to trade with. Let me have your thoughts. Cheers Doc1.doc

Hello Traders This request might be considered lazy, however can someone please provide a link to where I can view the ranking/weighting of the components of the Nasdaq 100. I understand they're rated by market capitalization, but I couldn't find the list. Cheers Carlton

Gosu thanks for responding I will look again at my recording and if I can somehow figure out how to take a clip from the avi I will post it. Cheers

Browns fan, Thanks for responding. In answer to your question, the bid/ask was moving and it so happens that I did record it. I really dont believe it was my Internet connection. I recorded the trading using Camtasia

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