8/7/07 Trading Log / Idea Sharing

[AbeSmith 10]

Hello. Yesterday we had over 2% gain in the Dow. Today we have a fed policy statement at 2:15ET. It will be interesting to see if and how the market reacts.

[btrader2 10]

GM AbeSmith. Good trading to you and all today! Right now looking for test of Yesterday's VAH or Pivot.

[AbeSmith 10]

GM AbeSmith. Good trading to you and all today! Right now looking for test of Yesterday's VAH or Pivot.

 

GM btrader2. Good trading to you also.

[AbeSmith 10]

Trade 1: +12. First trade using the VBC 5000.

[btrader2 10]

YM staying balanced up to Fed???

[Nvesta81 10]

YM staying balanced up to Fed???

 

Seems like it, Peak Volume Price is snug on VWAP and the price is hovering slightly above and below the VWAP.

 

 

I'm starting to sound like Jerry, but the guy is a genius so.

[brownsfan019 17]

Trade 1: +12. First trade using the VBC 5000.

 

Abe,

Glad to see you are watching and paper trading on the VBC. I assume you are still on paper. You better be.

 

So, what are your immediate reactions to the VBC? Just curious to hear what you think of a chart the provides opportunities if you pay attention. I haven't looked at a 5000 on the YM, so not sure how that looks in real-time.

[btrader2 10]

This weekend I plan to dive into those Market Statistics threads. Just haven't had time. But I see compatibility with my style.

[brownsfan019 17]

The one thing you will need to play with Abe is that volume setting. I pulled up a 5000 YM and that is way too slow for me.

 

That means nothing to you, point is to play with some other settings as low as 500. It's not going to hurt anything to have a few different VBC's up if you are going to look at them. 5000 appears to be the 'slow' version. I would also look at 2500, 1000, 750 and 500. Obviously the smaller the #, the quicker the chart will respond.

 

Also, since you are looking at different VBC's, I've also read that some use Fibonacci numbers. I guess I just like round numbers as I didn't see a big difference in a fib number and a round number.

[AbeSmith 10]

Abe,

Glad to see you are watching and paper trading on the VBC. I assume you are still on paper. You better be.

 

So, what are your immediate reactions to the VBC? Just curious to hear what you think of a chart the provides opportunities if you pay attention. I haven't looked at a 5000 on the YM, so not sure how that looks in real-time.

 

Yes Brownsfan. Still paper trading. I plan to paper trade until I'm consistently profitable. Not sure how to define that though.

 

I'm not sure what to think about VBC. It is new to me. But right now it makes more sense to me than the 5 minute chart.

 

The one thing you will need to play with Abe is that volume setting. I pulled up a 5000 YM and that is way too slow for me.

 

That means nothing to you, point is to play with some other settings as low as 500. It's not going to hurt anything to have a few different VBC's up if you are going to look at them. 5000 appears to be the 'slow' version. I would also look at 2500, 1000, 750 and 500. Obviously the smaller the #, the quicker the chart will respond.

 

Also, since you are looking at different VBC's, I've also read that some use Fibonacci numbers. I guess I just like round numbers as I didn't see a big difference in a fib number and a round number.

 

Thanks Brownsfan. I will look into the the different volume settings. I'm not sure how to use the Fibonacci numbers. It seems interesting. I understand it is based on a pattern found in nature, and the pattern can also be found in the market. I wonder how often the pattern occurs in the market, and in what market conditions it occurs most often.

[AbeSmith 10]

Trade 2: +1. Looking at the chart now it seems I moved the stop to break even too early.

[Nvesta81 10]

I'm not an expert on Volume Spread Analysis but has anyone else noticed the huge down volume appear at 12:09 PM EST, could this be evident of price rejection at these levels before the fed?

[brownsfan019 17]

Thanks Brownsfan. I will look into the the different volume settings. I'm not sure how to use the Fibonacci numbers. It seems interesting. I understand it is based on a pattern found in nature, and the pattern can also be found in the market. I wonder how often the pattern occurs in the market, and in what market conditions it occurs most often.

 

When I mentioned the fib #'s I was just referring to setting your VBC level @ one of the fib #'s. I don't use actual fib analysis at all, but on elitetrader they have discussed setting the VBC level to an actual fib #. To me, not a big deal or difference.

[AbeSmith 10]

Trade 3: +32.

[AbeSmith 10]

Trade 4: +8.

[AbeSmith 10]

My trading report today:

 

4 roundtrips. +53. Realized gain 247.96.

[OAC 10]

Brownsfan, I noticed that you have been trying to get Abe to use the

VBC lately. If I remember correctly, Abe has an account with IB . IB only update volume when the price changes. which is different from other data vendors. How will that affect his charts ?

[MrPaul 10]

Brownsfan, I noticed that you have been trying to get Abe to use the

VBC lately. If I remember correctly, Abe has an account with IB . IB only update volume when the price changes. which is different from other data vendors. How will that affect his charts ?

 

If you compare VBC's @ IB to VBC's @ Tradestation they all print the same.

[brownsfan019 17]

Brownsfan, I noticed that you have been trying to get Abe to use the

VBC lately. If I remember correctly, Abe has an account with IB . IB only update volume when the price changes. which is different from other data vendors. How will that affect his charts ?

 

Good question OAC and it seems MrPaul knows the answer b/c I am not sure to be honest. Never used IB.

[brownsfan019 17]

My trading report today:

 

4 roundtrips. +53. Realized gain 247.96.

 

Nice day Abe!

 

So, what worked well today? I'd love for you to say the VBC, but wondering what worked today.

[AbeSmith 10]

Nice day Abe!

 

So, what worked well today? I'd love for you to say the VBC, but wondering what worked today.

 

Thanks Brownsfan. I'm not sure what exactly worked today. A combination of things I would say. 1. The VBC. I looked at 5000 and 1000 VBC, and I would say it is very helpful for catching momentum setups. 2. Logging my trades in detailed charts is also very helpful. I get to review the trades at the end of the day, and perhaps every month or week. Also, with the TL setup I receive helpful feedback from other traders. I find this to be very helpful.