Usdcad Smi/mp

[gassah 10]

I find the upthrust and test sequence as taught by Wyckoff/SMI interesting viewed through the lens of MP. The upthrust (false break) into the 3rd standard deviation that responded down to the POC and then rallied testing High Value. Wyckoff talks a lot about swings to the half-way point but I find looking for S/R based on market structure far more logical.

 

BTW, how do we embed attachments? Thx. Also, don't know why I can't edit the thread title to all caps?

 

nic

Edited April 11, 2008 by gassah

[gassah 10]

Ah, story has changed somewhat. The hazards of posting before the bar is finished. Principles still apply.

 

nic

[DbPhoenix 42]

Given W's fondness for trading the extremes and for analyzing supply/demand imbalances in congestion zones and trading ranges for clues to direction and potential turning points, he seems to have been only a titch away from what is the essence of MP. He talks around it, but never really gets to it. Makes me wonder if there are notes buried under a floorboard somewhere that predate MP by sixty or seventy years...

[DbPhoenix 42]

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This midpoint stuff sometimes gives me the creeps:

 

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[gassah 10]

Me too. I have to read Tom Alexander's book again. I think he stated that big moves often begin at the range center of a mature profile.

 

nic

[DbPhoenix 42]

In my experience, it's both. If traders are trading the value range, the better moves are from the extremes toward the middle, particularly since they usually continue toward the opposite extreme.

 

However, if traders are working toward a new value range, as they did two days ago, the move can start at the midpoint of the then current range and take off to points unknown (that one caught me off guard).

 

The best advice I've received so far is to plan your trading according to where you open in relation to the then current (volume) range (what you might call the +/-1SD range). If you open within that range, look to trade the extremes. If you open outside the range, look to the range to provide support or resistance, depending on where you are in relation to it. If you open within the range and try to trade one extreme or the other but break out instead, you have a real challenge facing you. Entering these breakouts is tricky, to say the least.

[erierambler 10]

I find the upthrust and test sequence as taught by Wyckoff/SMI interesting viewed through the lens of MP. The upthrust (false break) into the 3rd standard deviation that responded down to the POC and then rallied testing High Value. Wyckoff talks a lot about swings to the half-way point but I find looking for S/R based on market structure far more logical.

nic

 

Let me jump in here......... nic, are you looking for "S" at the other side of the POC after the test ? ( or am I missing the point altogether? )

Also is this thread just about USD/CAD?

erie

[gassah 10]

Let me jump in here......... nic, are you looking for "S" at the other side of the POC after the test ? ( or am I missing the point altogether? )

Also is this thread just about USD/CAD?

erie

 

Erie,

 

I look to enter at the upthrust (or any weakness in the "red zone") with a potential add-on at the test and an exit at the other extreme. If the higher timeframe is down then I'll hold a half for a break down unless it looks as though it's not going to do so or add again at some point below the range (trend trade).

 

The thread is open to anything.

 

nic

[erierambler 10]

Ok , then I do understand , can't be any simpler than that

 

 

 

Erie,

 

I look to enter at the upthrust (or any weakness in the "red zone") with a potential add-on at the test and an exit at the other extreme. If the higher timeframe is down then I'll hold a half for a break down unless it looks as though it's not going to do so or add again at some point below the range (trend trade).

 

nic

[DbPhoenix 42]

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This distribution is how I arrive at the boxes I've been posting all over the place. The dots are where I'd enter and exit trades, assuming that other conditions (e.g. volume) are go.

 

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[heretodaygone... 10]

 

 

The best advice I've received so far is to plan your trading according to where you open in relation to the then current (volume) range (what you might call the +/-1SD range). If you open within that range, look to trade the extremes. If you open outside the range, look to the range to provide support or resistance, depending on where you are in relation to it. If you open within the range and try to trade one extreme or the other but break out instead, you have a real challenge facing you. Entering these breakouts is tricky, to say the least.

 

That's how I view it. If one can understand the opening in relation to the previous day(s) volume range(s), then use bar to bar p/v, vsa, s/d ,vwap or whatever, high probabilty trades with manageable risk are assured. Understanding the relationship of horizontal volume and vertical volume is key.