The Price / Volume Relationship

[Spydertrader 10]

:doh:

 

LOL. It could be much worse.

 

After all, you could have looked at a chart posted by Mktr, responded to a question posted by a different poster (you), then apologized to a third poster for misunderstanding his question (emac) - all while not realizing you were speaking to three different people (something I only noticed just now).

 

ROFL.

 

That'll teach me not to look at who posted when responding. :doh:

 

- Spydertrader

[Yader 10]

Hi Spyder,

 

Here's my first attempt at tapes. I've read a fair amount of the thread so far, over and over again and I feel I've got a fairly decent idea of how to apply the tape pair (or more for lats). In the attached pic I've noted tape pairs that are not either long or short pairings. Only found one lateral, no hitches. This chart is today's. Comments?

 

Wanting to learn to crawl before walking.

 

Thanks!

[Yader 10]

OK, I am thoroughly confused. Let's start with something simple: Can you have a sequence like b2b 2r2b 2r2b2r2b? If not, why? 'Nature' a fair answer for me if not.

 

Are all sequences either of the form b2b 2r2b or r2r 2b2r? If so, which is the correct view of the interchange between sequences b2b 2r2(b2b) 2r2b (that is an overlapping uptrend where the paranthetical b2b represents the end of the first uptrend and the beginning of the new uptrend) or would the correct sequence be two separate uptrends meaning b2b 2r2b (2) b2b 2r2b? Does that make sense?

 

Hopefully someone can clear my head, please direct me to a post elsewhere in this thread if this has been covered already. TIA!

[Spydertrader 10]

Comments?

 

Color your bars red and black matching volume to Price.

 

Draw your RTL first (except in cases where you cannot), and then add the LTL.

 

- Spydertrader

[Yader 10]

Draw your RTL first (except in cases where you cannot), and then add the LTL.

 

- Spydertrader

 

When you say RTL and LTL are you now talking about merging the individual tape pairings into trends or are you simply saying when drawing in the tapes for individual pairs to start with the RTL tape first and then move on to the LTL tape?

 

If I might show my ignorance could I also ask how the LTL is to be formed? Is it simply following what one would do for the RTL (connect the bottoms/tops) or is the LTL formed by duplicating the RTL and placing it at the opposite end so they are parallel to each other?

 

Much appreciated!

[ehorn 10]

My view of the day...

[Spydertrader 10]

When you say RTL and LTL are you now talking about merging the individual tape pairings into trends or are you simply saying when drawing in the tapes for individual pairs to start with the RTL tape first and then move on to the LTL tape?

 

All containers have two trend lines - a right trend line (RTL) and a left trend line (LTL). Price annotations begin with an RTL, and end with an LTL. For each case (A - J on page one of this thread), you must annotate an RTL and an LTL. When combining these cases, you must annotate an RTL and an LTL. When annotating the slower fractals (traverses, channels), you must annotate an RTL and an LTL. Every container you build must have an RTL and an LTL. In addition, your Volume Pane must contain the Gaussian annotation which match the Price containers.

 

If I might show my ignorance could I also ask how the LTL is to be formed? Is it simply following what one would do for the RTL (connect the bottoms/tops) or is the LTL formed by duplicating the RTL and placing it at the opposite end so they are parallel to each other?

 

We all started out a bit lost and unsure of the road ahead. Over time, the feeling of being overwhelmed will subside as you gain knowledge, skills and experience. To answer your question: Choice B.

 

- Spydertrader

[ehorn 10]

My view of the day...

[Yader 10]

My eyes are beginning to see the gaussians. :shocked: FWIW I think I'm able to see the traverses and channels better right now, a third is hard to see, I can make two work. I can make out parts of the tapes but haven't figured out how to piece them together quite yet. The volume hangs me up a bit.

 

I've been able to go back through my charts of equities with this approach and using gaussian volume sequences I can now see why some of my trend lines that I had drawn in the past failed. It's really not about price, it's about volume! Volume will dictate the price you could say; and until the volume resolves itself the price is going to follow. <-- This is why some of my trend lines that I thought should hold did not, the volume was not there to support it! Very helpful.

 

Thanks Spyder and many others who I've been able to watch and learn a little portion of this idea from. I'll keep refining; think I'm on the right path. :beer:

[Spydertrader 10]

It's really not about price, it's about volume!

 

And so begins your journey .......

 

- Spydertrader

[ehorn 10]

OB at open today said (to me) "you jumped"

 

Making my Orange Traverse was just a tape and making PT3 of traverse 15:45 ET.

 

Thoughts; A Pennant BO (1 bar) on IV does not constitute a return to DOM on 5M tape.

 

So adjust and pick up the routine.

 

Who can complain at this volatility. Makes the working days a bit shorter.

 

Have a nice weekend.

[saturo 10]

Spyder - a question about your personal trading style...

 

If I am not mistaken you only monitor and annotate the 5 minute ES - is that correct?

 

What other charts/time frames do you look at (if any)?

 

Roughly how many trades per day do you make (on a day when you trade through a whole day)?

 

Do you employ an SCT style where you always have a position open?

[Spydertrader 10]

Spyder - a question about your personal trading style...

If I am not mistaken you only monitor and annotate the 5 minute ES - is that correct?

 

For the vast majority of trading days, yes.

 

What other charts/time frames do you look at (if any)?

 

For the vast majority of trading days, none. While I have the ability to use a 'medium' or 'fine' toolset, I simply don't feel like working that hard. As such, I put away the YM (one less chart to annotate[less work]), I no longer need The STR-SQU (I'd much rather chat on the phone than trade within laterals and Outside Bars), and I have put away the OTR charts (I don't feel like trading within internal formations - again, too much work).

 

I do have the DOM up, but for Order Entry purposes only. If i get board, I'll monitor the DOM Walls for a spell - watching them move back and forth while big money plays its games - but again, I'm only watching because I am board and I need something to keep me busy.

 

Roughly how many trades per day do you make (on a day when you trade through a whole day)?

 

The number of trades varies depending on the type of market. For example, an 'M' or 'W' day provides far more opportunity (more trades) than a trending day. I've entered the market long at the Open of Bar One and held until 4:00 PM Eastern time quite frequently, but on other days, I've reversed direction every 30 minutes to an hour. As such, my 'range' of trades falls between 1 and 12 on any day with a mode of 5 -6.

 

Do you employ an SCT style where you always have a position open?

 

If I trade on any given day (and plan to trade the entire day), I have a position on for the entire day. I enter at the open of Bar One and I am always flat at 4:00 PM eastern time (close of bar).

 

I may exit the market early on any given day if the market signals it has reached a Point Two within 20 minutes of 4:00 PM.

 

I also rarely trade the entire day in the summertime. I'd rather be fishing.

 

HTH.

 

- Spydertrader

[saturo 10]

Thanks - this is very very helpful!

 

I am transitioning from enter-hold-exit to SCT. Seeing what works is useful.

 

So if you were trading today and not fishing ... I am guessing that today you had:

 

enter at open

2 rev around 10:10

3 rev around 11:30 (or 12:30 depending on how you saw it)

4 rev around 13:20

exit close

 

All times close of EST.

[wind_ 11]

I'm joining in learning to monitor and annotate. Attached is today's chart of Hang Seng Futures.

I have a confusion in marking the part circled in blue, whether it was a "2B 2R B2B" or "B2B". Would anyone help me in pointing any errors? Any comments is greatly appreciated. Thanks.

[ptunic 10]

Monday, Aug 30, 2010.

[wind_ 11]

Today's HSI Futures. Trying to find where I missed the 2B 2R traverse sequence circled in blue. Any help is greatly appreciated. Will start to monitor ES tomorrow when I get the data.

[cnms2 10]

Today's HSI Futures. Trying to find where I missed the 2B 2R traverse sequence circled in blue. Any help is greatly appreciated. Will start to monitor ES tomorrow when I get the data.

I added my gaussians to your chart.

[wind_ 11]

I added my gaussians to your chart.

 

Thanks cnms2. I see now how I missed the traverse sequence. I jumped fractal on the previous day, annotating tape as traverse.

[Tams 20]

ignoring volume behavior is like ordering a steakburger and throwing out the meat.

[TrueBalance 10]

ignoring volume behavior is like ordering a steakburger and throwing out the meat.

Which is actually a very healthy thing to do.

 

Sorry, I could not resist.

 

Best wishes,

TB

[patrader 10]

very interesting thursday(9/2) and friday(9/3) both ended with sym laterals but with subtle differences.

[cnms2 10]

very interesting thursday(9/2) and friday(9/3) both ended with sym laterals but with subtle differences.

This seems a potentially instructive discussion. Maybe somebody can start it ...

[nkhoi 10]

very interesting thursday(9/2) and friday(9/3) both ended with sym laterals but with subtle differences.

any pic to go with that?

[patrader 10]

any pic to go with that?

 

http://www.sierrachart.com/userimages/upload_2/1283874408_15_UploadImage.png