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The S&P Chronicles - An Amalgamation of Wyckoff, VSA and Price Action


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The S&P Chronicles - An Amalgamation of Wyckoff, VSA and Price Action

 
 Feibel 
Surrey, UK
 
Posts: 215 since Jun 2017


Mich62 View Post
Amazing, how a man called Richard D. Wyckoff 100 years ago described the working of today's markets and especially trading ranges. Attached two examples of distribution on the 1m chart, 1 from March 18 and 1 from yesterday March 28.

I hope Feibel doesn't mind me posting in his thread but it's all about Wyckoff and price action trading. Just want to show it.

Feel free to post, the purpose of this thread is too help others. The 1m distribution areas you have shared are excellent.

Recently had a heated debate with a group of London traders in regards to the markets being fractal in nature, 'load of baloney' apparently, interesting how the minds of institutional traders operate......

Thanks for sharing,

F


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 Rrrracer 
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Mich62 View Post
Amazing, how a man called Richard D. Wyckoff 100 years ago described the working of today's markets and especially trading ranges. Attached two examples of distribution on the 1m chart, 1 from March 18 and 1 from yesterday March 28.


Nice markup @Mich62

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 Miesto 
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How to pick a top. Another nice distribution in the ES yesterday despite the strong uptrend. I made this analysis and thought might as well post it. Hope you like it.

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 Miesto 
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Some early morning price action today in the ES on a 30s chart. Yes, that's right, a 30s chart. How low can you go?

Every trader has his one preferred trading time-frame. Often price movement on a lower time-frame is called "noise". I believe there is no noise. Every tick, every bar has meaning and is important. This is pure price action trading, or tape reading, as they used to call it.

Any time-frame is good for trading. The time-frame you choose is personal. How should you decide on the time-frame to use?

"Concentrate on the particular time frame you choose to trade on, but look at higher time frames to determine if a small or large target should be played for as well. The number one determining factor for which time frame to trade on should be the amount a trader can afford to risk." Linda B. Raschke in Professional Trading Techniques, page 16. I never saw it described more clearly. Thank you Linda.

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trader14
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Hi Guys,

I've got a question. Does anyone here use PnF charts?

Years ago I did them by hand and now trying to get back into using them again. It's been too many years & I'm ashamed to say I can't remember if the following chart is proper. For intra day trading I used a 3x3, works quite well !

Anyway here's a 10x3 after reaccumulation for a broader view of the market. You can clearly identify price action with no supply, demand in control and about to move into the markup phase. I've worked up the count as best I remember. Please comment if you see anything I need to go back and work on.

Thanks in advance!!!

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@trader14: I made two counts, A and B, and I would say A is the more appropriate and realistic count (because of the phases, not marked).



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trader14
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Mich62 - Thanks for your above comments & chart antidote. Actually pulled out my SMI course. After a refresher on the PnF chapter I'd agree with your comments. Shouldn't of been lazy and refreshed the cobwebs first. Anyway as I went further into the chapter, dark memories surfaced. I've given this a lot of thought over the last day or so and really don't wish to peruse PnF charting any further. Feibel's comment "using PnF charts intraday is time suicide" is 100% correct!!! Been there done that, no mas lol.


Feibel - Your now deleted post. Once we truly understand and can accurately judge the market by it's own action, it's behavior, it's structure. The question becomes, do we really need PnF charting in our tool box? At one time I would pound the table and said YES! That being said... today in my opinion, (for me) no, no we don't. Some may disagree and that's OK. I know several who actually trade successfully using nothing but a PnF chart. That's a personal decision and one I choose not to follow for the reason stated above. At the end of the day any method one chooses to follow will work for that individual. The method isn't as important as the mindset. As time permits please continue adding to your thread. They have brought to light areas I'm weak and need to improve. For that I thank you!!

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Trader14: hahaha, I have been in the same loop and fully understand what you're saying. I guess it's the road we have to travel (to end at the start when we begin to understand things do work sometimes, and sometimes they don't). After using time based charts, tick, PnF, Range, Renko, Volume and even Heiken Ashi (not to mention all the indicators) I ended up with naked time based charts with, indeed, multiple time-frames. Choose one set-up (whatever it is you feel comfortable with) and stick to it. It has been often said. The discussion which chart type is best to use is completely useless, just like the search to the perfect setup (indicator). Good luck.

ps for me it was the market to point out my weaknesses (it was not cheap) and the areas where to improve ;-)

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 Feibel 
Surrey, UK
 
Posts: 215 since Jun 2017

Apologies, wasn't aware of the deletion.

PnF charting is definitely a dying art, that's not to say the techniques aren't valid. However, when versed in deep Wyckoffian logic you'll begin to understand the Law of Cause and Effect in it's entirety, when this 'epiphany' occurs PnF becomes somewhat invalid.

The nature of the markets in its simplest form is too find either buyers or sellers, we literally (dependent on tmeframe) bounce between support and resistance areas. By gauging the quality of selling or buying we can determine the strength to see whether a support or resistance level/area, will either break or hold.

NOW, some support and resistance levels act as trading ranges and in its here we build cause; build energy for price to move either up or down. As one becomes proficient in their chart reading we can not only read the direction of the break, but also determine the effect, which of course is the breakout and subsequent trend.

In a nutshell we can read the cause that is built and project price (the effect) it's a universal law not only applicable to trading, this may sound metaphysical or mystical (label it as you will) but believe me when I say (and I have done extensive studies) that The Law of Cause and Effect truly understood is a powerful tool and often misused, probably due to its simplicity and mis-interpretation. There are layers to 'cause' such as reaccumulation etc that one must acknowledge to gain a true price projection.

As described above we use the Law of Cause and Effect to project price, it's as accurate as an PnF chart, if not more so, due to the varying count size which many PnF charting practioners often appear to have. Importantly we can determine the effect within 30 seconds or so, no need for such time consuming, antiquated PnF charts.

Using PnF charts for an intraday environment is time suicide, we have the adage of MULTIPLE TIME FRAMES, something the traders of the past who used PnF (pioneers) did not have; this is truly the modern traders greatest edge. Some would argue order flow, again an old technique as traders used to watch the ticker tape.....

For intraday trading, targets should be higher time frame structure, unless we come from a trading range 'cause' where we can evaluate our 'effect' or one can read a supply/demand imbalance as it unfolds.

This is far from an attack against PnF charting techniques, there are a few PnF grandmasters in the world, that solely trade from PnF and successfully, they do not use any other forms of chart (time based bar charts or otherwise) the simplicity of their trading is astounding, as they understand that PnF in its purest form is 'Cause and Effect'.

From a personal standpoint I have abandoned the tool for reasons stated above, mainly due to time; inefficient in this day and age. The inclusion of multiple time frames (at the click of the mouse) has eradicated the need for PnF techniques.

All the best,

F

 
 
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Glad you put that back up there @Feibel, a valuable post.

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