NexusFi: Find Your Edge


Home Menu

 





Two Line Trading


Discussion in Traders Hideout

Updated
      Top Posters
    1. looks_one Andrew with 54 posts (3 thanks)
    2. looks_two cunparis with 49 posts (16 thanks)
    3. looks_3 FredyMegaG with 36 posts (31 thanks)
    4. looks_4 Eric j with 11 posts (6 thanks)
      Best Posters
    1. looks_one cclsys with 1 thanks per post
    2. looks_two FredyMegaG with 0.9 thanks per post
    3. looks_3 Eric j with 0.5 thanks per post
    4. looks_4 cunparis with 0.3 thanks per post
    1. trending_up 97,572 views
    2. thumb_up 66 thanks given
    3. group 43 followers
    1. forum 187 posts
    2. attach_file 38 attachments




 
Search this Thread

Two Line Trading

  #111 (permalink)
Andrew
sea side
 
Posts: 217 since Dec 2009
Thanks Given: 86
Thanks Received: 25

Cunparis,

# 1 - You got that exactly, the only thing is that it's necessary to watch price at the same time, i.e. "volume/price divergences" as I've called that previously.
# 2 - Again, correct, that peaks, what are they ? Have you watched price behavior after that peaks ?

Krgds,
Andrew


cunparis View Post
Hi Andrew, I didn't forget about you (since you reminded me) I am just getting caught up due to being offline most of yesterday.

For #1 - I think it's interesting but I'm not sure how it will be useful. Increasing volume can be good or bad.

For #2 - I'm not sure this will be useful. There is a lot more volume at the open and that will distort things a bit because volume will drop off and then there will be peaks.

Have you tried any of these ideas manually? If you can show some charts where it could be useful then I will see if I can program it. I'm a bit short of time right now.

Quoting Andrew: 1. To measure in % decrease/increase of present volume bars against previous one
2. Calculate "average middle" volume since regular session start and again % of decrease/increase of last volume bar against it calculated "average middle" volume


Reply With Quote

Can you help answer these questions
from other members on NexusFi?
Deepmoney LLM
Elite Quantitative GenAI/LLM
Futures True Range Report
The Elite Circle
Are there any eval firms that allow you to sink to your …
Traders Hideout
New Micros: Ultra 10-Year & Ultra T-Bond -- Live Now
Treasury Notes and Bonds
Better Renko Gaps
The Elite Circle
 
Best Threads (Most Thanked)
in the last 7 days on NexusFi
Get funded firms 2023/2024 - Any recommendations or word …
61 thanks
Funded Trader platforms
39 thanks
NexusFi site changelog and issues/problem reporting
26 thanks
Battlestations: Show us your trading desks!
26 thanks
The Program
18 thanks
  #112 (permalink)
 
cunparis's Avatar
 cunparis 
Paris, France
 
Experience: Advanced
Platform: Market Delta & Ninjatrader
Trading: ES
Posts: 2,565 since Jun 2009
Thanks Given: 1,162
Thanks Received: 2,093


cunparis View Post



BTW the current COT reports show the smart money is selling, quite a lot. So that provides a directional bias. When we see the HVC bars we cannot really know if it's accumulation or distribution. But usually if HVC is after a move up it's distribution because the pros do not chase the market (usually!). Also the COT showing smart money selling will also support the view of distribution.

Friday the market moved up quite a bit. My personal view is that the pro's are suckering in longs and forcing shorts to cover before a down move next week, possibly Monday.

Follow me on Twitter Reply With Quote
  #113 (permalink)
Andrew
sea side
 
Posts: 217 since Dec 2009
Thanks Given: 86
Thanks Received: 25


Cunparis,

Thank you.
Does it tells anything to anybody ?

Krgds,
Andrew


cunparis View Post
Here ya go


Attached Thumbnails
Click image for larger version

Name:	1-8-2010 4-52-05 PM.png
Views:	262
Size:	29.0 KB
ID:	6515  
Reply With Quote
  #114 (permalink)
 
cunparis's Avatar
 cunparis 
Paris, France
 
Experience: Advanced
Platform: Market Delta & Ninjatrader
Trading: ES
Posts: 2,565 since Jun 2009
Thanks Given: 1,162
Thanks Received: 2,093


cunparis View Post
BTW the current COT reports show the smart money is selling, quite a lot. So that provides a directional bias. When we see the HVC bars we cannot really know if it's accumulation or distribution. But usually if HVC is after a move up it's distribution because the pros do not chase the market (usually!). Also the COT showing smart money selling will also support the view of distribution.

Friday the market moved up quite a bit. My personal view is that the pro's are suckering in longs and forcing shorts to cover before a down move next week, possibly Monday.

Current S&P COT chart:




Get more for free here:

https://commitmentsoftraders.org/wp-content/uploads/Static/SP_OPT.png

Follow me on Twitter Reply With Quote
Thanked by:
  #115 (permalink)
 
cunparis's Avatar
 cunparis 
Paris, France
 
Experience: Advanced
Platform: Market Delta & Ninjatrader
Trading: ES
Posts: 2,565 since Jun 2009
Thanks Given: 1,162
Thanks Received: 2,093

And the best COT book:

Amazon.com: The Commitments of Traders Bible: How To Profit from Insider Market Intelligence (Wiley Trading) (9780470178423): Stephen Briese: Books

(written by the guy who makes the free charts)

But I warn you again, if you want to go down the COT road it's a lot of work. Very time-consuming. Seems very simple which is the trap. hehe..

if you just want to daytrade or even hold trades 1-5 days, I don't think it's necessary or worth the time & effort.

I subscribe to the author's newsletter so that I don't have to analyze it myself. It's expensive though.

Follow me on Twitter Reply With Quote
  #116 (permalink)
Andrew
sea side
 
Posts: 217 since Dec 2009
Thanks Given: 86
Thanks Received: 25

Cunparis,

That's why I prefer to watch "raw" volume

Krgds,
Andrew

Reply With Quote
  #117 (permalink)
Andrew
sea side
 
Posts: 217 since Dec 2009
Thanks Given: 86
Thanks Received: 25

Why not to use direct source ?

Commitments of Traders

Krgds,
Andrew


cunparis View Post
Current S&P COT chart:




Get more for free here:

https://commitmentsoftraders.org/wp-content/uploads/Static/SP_OPT.png


Reply With Quote
  #118 (permalink)
Andrew
sea side
 
Posts: 217 since Dec 2009
Thanks Given: 86
Thanks Received: 25

P.s. Cunparis,
That's why I prefer some "simple" contracts apart from ES, as it's, at my opinion, too much synthetic, i.e. universe of SP instruments is huge, lot of trades are done as hedging or whatelse, like that example, buy 1 SP - sell 5 ES, etc, etc.
But still even for that, think "raw volume" shall help to see more or less correct picture.
As nobody can change price/volume correlation and divergence, it's pure physics.

P.s.2 I will be back in a few hours

Krgds,
Andrew


cunparis View Post
BTW the current COT reports show the smart money is selling, quite a lot. So that provides a directional bias. When we see the HVC bars we cannot really know if it's accumulation or distribution. But usually if HVC is after a move up it's distribution because the pros do not chase the market (usually!). Also the COT showing smart money selling will also support the view of distribution.

Friday the market moved up quite a bit. My personal view is that the pro's are suckering in longs and forcing shorts to cover before a down move next week, possibly Monday.


Reply With Quote
  #119 (permalink)
 
cunparis's Avatar
 cunparis 
Paris, France
 
Experience: Advanced
Platform: Market Delta & Ninjatrader
Trading: ES
Posts: 2,565 since Jun 2009
Thanks Given: 1,162
Thanks Received: 2,093


Andrew View Post
Why not to use direct source ?

Commitments of Traders

Krgds,
Andrew

That's what I use to import the data into tradestation. I then process the raw data. In the book he talks about using a stochastic formula on the raw data.

Follow me on Twitter Reply With Quote
  #120 (permalink)
 
FredyMegaG's Avatar
 FredyMegaG 
Lisbon
 
Experience: Beginner
Platform: NinjaTrader
Broker: Mirus Futures / Zen-fire
Trading: Es
Posts: 59 since Dec 2009
Thanks Given: 19
Thanks Received: 44


hey cunparis,

isnt there an indicator that plots the net difference in the bulls and bears from COT?

Started this thread Reply With Quote




Last Updated on February 18, 2012


© 2024 NexusFi™, s.a., All Rights Reserved.
Av Ricardo J. Alfaro, Century Tower, Panama City, Panama, Ph: +507 833-9432 (Panama and Intl), +1 888-312-3001 (USA and Canada)
All information is for educational use only and is not investment advice. There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
About Us - Contact Us - Site Rules, Acceptable Use, and Terms and Conditions - Privacy Policy - Downloads - Top
no new posts