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If my memory serves correct, Bloomberg terminals by default use non-back adjusted data, but with the ability to create a continuous contract if needed. X_Trader is the same way.
With most of the custom in-house institutional software I have seen over the years (mostly hedge funds and several investment banks), the mix has been 50/50 depending on the type of trading. Since a good portion of the energy markets is not outright trading, but instead spreads, hedges, etc, and very contract specific.....thus defining the need, if any, for back data, adjusted or otherwise.
As far as the masses go, I agree whatever is easiest and cheapest to come by.
If you can keep your wits about you while all others are losing theirs, and blaming you....The world will be yours and everything in it, what's more, you'll be a man, my son. - Kipling
Initially today I thought we may have formed an island reversal from yesterday into today, but we were able to trade down and fill the double gap zone, so that idea is out.
Still, if this overall bear move in crude was very healthy, we would not have traded back above 92.70/92.80 area at all once we opened below it on 9/8. Today, 9/9 we gapped back up above that level, negating the healthy/strong bear movement.
The recent low of 9/8 was nearly exactly a measured $4 move equal to last down leg from 8/11 to 8/19. So, we could have just seen some profit taking.
There is also the issue of back-adjusted and non-back-adjusted data giving is different pictures. Neither one is superior, just something to keep in mind that there isn't a unanimous view on long term market structure out there. That profit taking could also have been at the trendline @PandaWarrior presented to us. Heck, even long term new money longs there.
Ultimately, that 92.75 AREA is currently my line in the sand for medium-term bias. Longer term I have to remain short biased below 96.00 area.
I appreciate the thread and all the efforts of the participants.
I like your characterization of "short term" and "longer term"! If I read your chart correctly, those are weekly bars. As someone who uses 15 tick stops looking for 15-50 tick targets, I can verify that there's a lot of trading happening within those bars!
Picture perfect setup on crude with a weak retrace trying to work into yesterday's trading zone and above the previous day's VPOC, close and the previous weekly low. Previous day's low was right below.
'Set it and forget it' after that with price staying below the 20 for the move down....possibly close out the rest sometime this afternoon unless they want to bring it back up.
Price sitting at 200% of the measured AB move off the HOD.
If you can keep your wits about you while all others are losing theirs, and blaming you....The world will be yours and everything in it, what's more, you'll be a man, my son. - Kipling
There has been some great analysis and charts getting posted lately and I have a question:
What kind of techniques do you guys use for pinpointing your areas of interest? (Market Profile/Volume Profile/Price Action etc)
Are there any of you that incorporate the DOM into your trading?
Further to this, are there any of you just using the DOM and reading the order flow to trade CL?
I just read the chart, let things unfold in front of me and go into the day with no directional bias whatsoever.
Areas of interest are the big pedigree price levels like the previous high, low, close, current open, and Globex high/low (broken into the Asia and London sessions).....and then the levels that are further out like previous week's H/L, opening price of the week, etc. Anything else like pivots or profile levels will add weight to a technical setup, but means little to me on it's own. Overall, the overnight H/L's and previous day HLC play the biggest role for me.
As far as the DOM, yes I will watch it at times looking for unusually larger orders at certain price levels and how those orders are managed in regard to the price movement.
If you can keep your wits about you while all others are losing theirs, and blaming you....The world will be yours and everything in it, what's more, you'll be a man, my son. - Kipling
I tend to have strong biases, such as the lines in the sand I have recently posted about. I'll continue to look to trade in the direction of that bias, until it's proven wrong. Then I'll happily look the other way. These are purely based on structure that price creates. I was taking shorts today since we were below my line in the sand.
I do not use a DOM at all. I've developed a feel for the tape if you will, but it's by watching price tick up and down and how fast or slow that is happening.
As you can see from @BTR411 response and my own, you're going to get entirely different answers to what people are using. In this case, you're getting answers from two good traders, so that's more than you could ever ask for on futures.io (formerly BMT). Everything works and nothing works, it all depends on you.
I use certain levels, a couple of moving averages and how price interacts around those levels and moving averages. I use the DOM for order entry as well as getting a feel of how the price is flowing in one direction or the other...its very useful in looking at how a break out is going to go....the pace either speeds up or not as it gets close to breaking out....sometimes you can get in early as price begins to accelerate.
Simplicity is the ultimate sophistication, Leonardo da Vinci
Most people chose unhappiness over uncertainty, Tim Ferris
Perfect, thanks for taking the time to answer. I'm always curious/interested in what approach people are taking and I think it's encouraging that there are so many different ways to trade as it enforces the theory that there is no right or wrong method, but more a right and wrong way to apply your method.
I'm re-building my method from the ground up so at this point cannot contribute that much, but I enjoy this thread and the discussions on it. Hopefully in the future I can contribute with some worthwhile analysis of my own.
