All about balance

[TinGull 10]

Thanks to Paul for helping me on yet another pretty frustrating day for me. Always helps when people are willing to share their insights.

 

Balance. That's a new strategy of mine now. When price opens far away from value after a balanced day, chances are high that price will revisit that area to see if there's any more business to be done there. Case in point...today. Yesterday was a pretty balanced day. Heck, the last few have been balanced. On 3/7 there was a nice distribution, and yesterday price went on to seek out business in that value area in the mid-day.

 

What Im currently watching is 60 minute value areas on the 5min chart. I'm treating each 60 minutes as it's own daily profile, and each 5min bar as it's own 30 minute candle, if you will. Seeing candlestick reversal patterns when price is outside of it's previous 60 minute value area (this is based on volume, not time) combined with the delta divergence has been signaling a nice drop of 10-20 points (sometimes more) over the past couple days. I still need to research this a little more on the back end, but so far it seems pretty neat. Plus, how cool would it be when someone asks about your strategy and all you say is...man, it's just about balance.

[TinGull 10]

And just now, a quick 10 pointer from 87-77. Price was outside of its previous balance area and wanted to come back to it.

[notouch 10]

It has been balanced over the past few days. It's been an MP trader's dream - breaking into value, revisiting the VAH and then going down to the VAL and then straight back up to the VAH.

[dupaski 10]

still need to research this a little more on the back end, but so far it seems pretty neat.

 

Tin,

 

It's a about a month later, any more insight on this approach?

[TinGull 10]

Hey dupaski,

 

I actually haven't been trading this at all. I was always searching for the next best thing, and I thought this would be it. I went back to my old ways and am doing much better. Sorry to not keep it up.