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I've been trading the PATs method for about 4 months and I really have improved my trading following Price Action. I picked up Volman's book to get a different perspective on Price Action, not to trade Forex. I have to say I am only through about 1/3 of the book, but I really like how he talks about how to look at Price Action as he goes through his setups. It is not the setups that really have my attention but how he talks about how to look at how price action does certain things (testing Highs/Lows, etc.), how you have to trade your edge and can't cherry pick trades if your setup shows up, etc. Just some great tips on PA and the mental side of the game. I would recommend the book for anyone whether you ever trade Forex.
I have read Al Brooks book and he is a genius, I just couldn't grasp his material like I am sure a lot of traders have. Volman's book so far is simpler to read and understand, at least for me. And it really seems to compliment Mack's (PATs) information.
Is the tick chart in Forex similar to futures? For example I use 399 tick chart in CL and each tick is a transaction that occured. Is that the same in spot Forex?
I am not sure because I read something to the effect that a tick in spot Forex is whenever the bid price changes!?
Any one looked into think or swim for tick charting for Forex? My understanding that tick charting in MT4 can be a "hassle"... And I like TOS charting admittedly
I am not sure how the quality of spot Forex data feed is for TOS
just eyeballing it looks like it take 10-20min to complete a 399 tick chart on the EUR/USD. Keeping in mind this is the 4th of July week and the world cup is on...
Just to clarify your other comment. Tick based charts show each price change, not contract traded. So if you were looking at a crude chart 400 volume it would show 400 contracts traded. If there were 50 contracts traded consecutively at one price, say CL 95.00 a volume based chart would not move unless the bar was over. Where as if you were looking at a 400 tick chart it would show 400 price changes. So if crude went from 95.00 to 95.01 to 95.00 that would be three ticks (price changes), but if crude did 95.00 to 95.00 to 95.00 to 95.00 a tick chart only shows that as 1 tick. Forex data can be reliable depending on your broker and data feed. People often criticize ToS data because they receive it in blocks. I have it as well as ninja/cqg and I have never seen anything larger than a minuscule difference in quotes or futures fills. Option fills are a different story for ToS, but I won't get into that for the sake of this thread. For 99.9% of individual traders this won't really affect your trading. If you are trading with such a small margin of error on a visual based platform that a tiny spread will affect your trading, you are most likely losing money or at the very least not maximizing your profits in the first place. Also, if you are using forex for a specific reason, account size or a specific strategy, then go right ahead but if not then I would suggest moving to the futures contract /6E on ToS for Eur/Usd. There are a lot of benefits on going to the futures contract if you have the account size to back it up.
Another thumbs up for Volman. Excellent book. Bob sends marked up euro charts every Sunday, there's someone at trade2win who posts them regularly in a thread. There's nothing like seeing constant reminders of what he's talking about.
Bear in mind that unlike what is said in the book, Volman does sometimes adjust his take profit target (it's not always at a fixed 10 pips).
I'm thinking of borrowing some of Volman's ideas for CL possibly.
My first post here. I'm extremely late to the party and hope nobody will mind my bumping a thread in which the previous post was 7 months ago, but I also regularly trade some of the set-ups of this method.
I find both Volman and Beggs considerably easier reading than Brooks.
On the EUR/USD, 30-second charts do seem to be roughly equivalent to Volman's tick-charts.
I trade this on EUR/USD and sometimes on GBP/USD (for which I typically have a spread of more like 1.8-2.0 pips rather than 1.4/1.5 on the Euro, which is quite significant), between about 8.30am and 8.30pm London time, but avoiding the NY open time. I keep meaning to try it on USD/CAD as well, which I think is fairly well-behaved if lower-key?
I prefer spot forex to futures simply because of the position-sizing flexibility.
I see no reason why it shouldn't be equally viable, with different targets and stop losses, on slower charts (and Bob Volman states that it is), and I sometimes use it on 2-minute charts, as well. Not regularly enough to have worked out which I prefer.
It's fun, but requires quite a lot of concentration - definitely an acquired taste.
I think a better measure would be the ratio of spread to price, which makes GBP/USD and EUR/USD have relatively equal spread. USD/CAD's price is around 1.2 with a spread of 2+ and it has similar trading range as USD/JPY. So USD/JPY would be a better pair to trade.
Volman's second book, Understanding Price Action, is mainly about trading 5 min chart. At the end of the book there is a chapter about low vol environment where he suggested 200 tick chart which is what I am trading right now. I used to trade 70 tick charts and found it too fast for me. With a slower chart I can look at three pairs, EURUSD, AUDUSD and USDJPY. I also found his weekly 70-tick charts very helpful and much of the technique can be applied to 200-tick charts as well.
