QQQQ Merge

[gassah 10]

The attached is a QQQQ composite (merge) back to 5/9 that shows three distinct high volume nodes (POCs - red lines). The blue lines approximate value around each POC. Today QQQQ tested the upper POC and reversed, closing above the high of the composite.

[waveslider 10]

nice symmetry. What software do you use?

[gassah 10]

nice symmetry. What software do you use?

 

It's MarketDelta.

[MC 10]

Thanks...just making me want to get into MP some more. I only know the bare basics and have no platform for it yet either.

[gassah 10]

Today fell to the middle POC.

[gassah 10]

This morning found support at the upper border of the lower node.

[brownsfan019 17]

gassah - can you post one of the ES?

 

Just curious how that looks.

 

Thanks!

[gassah 10]

I don't get futures but here's SPY.

[brownsfan019 17]

I don't get futures but here's SPY.

 

So how would you interpret that today?

[gassah 10]

I separated out Friday's action and split today's. With the selling conviction down through the POC and lows of the composite Friday I'd be looking for a place to short today. The high volume node from Friday seems like a logical location for resistance.

 

There was a spike also and I'd be interested in seeing whether or not price accepts or rejects this region.

[brownsfan019 17]

I separated out Friday's action and split today's. With the selling conviction down through the POC and lows of the composite Friday I'd be looking for a place to short today. The high volume node from Friday seems like a logical location for resistance.

 

There was a spike also and I'd be interested in seeing whether or not price accepts or rejects this region.

 

OK, I think I am following... any chance you could annotate this on your chart in terms of what 'nodes' you are looking at and why? Forgive me as I haven't used delta much before, but curious on how this is used in real time.

 

Thanks!

[gassah 10]

The nodes are the high volume areas in blue.

[gassah 10]

They are good areas to look for S/R and places to place stops.

[brownsfan019 17]

The nodes are the high volume areas in blue.

 

So where are you looking to short and why? There's a few blue areas on your chart.

[gassah 10]

I watch the TPOs and volume nodes for potential S/R, to provide the market structure and then utilize other techniques to decide if they are good locations, such as Wyckoff, VSA, breadth, Delta.

 

I don't daytrade (yet) but will use this information in an attempt to optimize the EOD trades, sometimes taking positions intraday.

[brownsfan019 17]

I watch the TPOs and volume nodes for potential S/R, to provide the market structure and then utilize other techniques to decide if they are good locations, such as Wyckoff, VSA, breadth, Delta.

 

I don't daytrade (yet) but will use this information in an attempt to optimize the EOD trades, sometimes taking positions intraday.

 

That's a foreign language to me.

 

Some of us learn by pictures. So if you have time, annotating and illustrating the screenshots would be great!

 

Thanks again.

[gassah 10]

I just realized I didn't include the attachment in my of the posts. The first one shows Friday separated out and today split. The high volume area (node) would have been a place to look for resistance during the B and/or E periods today.

 

Looking at the other chart I've pointed out the weak rally with the supply bars in the same region that also shows the congestion to the left.

[Tannism 10]

Hi.

Back to your first post. Did you pick 5/9 because of the little spring of the BO area?

[gassah 10]

Yes, probably because 5/9 was the bottom of the range. I've since moved it back to 5/2 because it fits in well with activity since then.

[gassah 10]

I guess 5/7 would have been better than 5/9 because it made a lower low than 5/9 but I was a little sloppy.

[gassah 10]

While I see the annotation on my chart I might as well point it out. It's something Balancetrader mentioned. Notice that the little range in early January didn't offer any resistance on the way up in early April. It was passed through. When this happens it will usually offer S/R from the other side which did occur in May-June.

[Tannism 10]

This example ties up two of my current reading materials.

"It is those areas with the fewest trades, those areas where traders are least secure, where the most potential for price movement..often sustained price movement..occurs".

 

DbPhoenix..."Springboards" on his blog.

 

From Eng. Market Profile..Familiar Patterns in Statistics.

He calls this the double distribution pattern (not Wyckoff distribution, but statistical). "Volume is the final indicator of whether or not a newly-achieved price level, is accepted or not, by current market conditions. If volume is high, at one end, then one could expect price to work around that area more before it moves away from that area."

[gassah 10]

I'm only making intraday observations. It seems reasonable to take a short following the open and test of the lower node's POC with a stop above the node.

[gassah 10]

SPY opened today and tested the POC of the Wed-Thurs composite and then drove up to the POC of the 6/6-6/10 composite.

[erierambler 10]

SPY opened today and tested the POC of the Wed-Thurs composite and then drove up to the POC of the 6/6-6/10 composite.

 

Exactically...........

erie