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Reading Price Action
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Created: by GarryM Attachments:16

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Reading Price Action

  #11 (permalink)
Elite Member
Neubrandenburg, Germany
 
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Platform: R
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wh's Avatar
 
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here some link about tape reading or price action

Mastering the Art of Tape Reading (Part 1)

Mastering the Art of Tape Reading (Part 2)


for some germanies --> http://volumen-analyse.de/blog/?p=662

wh


Last edited by wh; August 28th, 2009 at 12:52 PM.
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  #12 (permalink)
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if you do not like the t&s frame, you can you use the vsa indicator (volume spread analysis) ... more information can be found here ...

why i add this for me vsa == tape reading

VSA Indicator - Beta - Page 2 - NinjaTrader Support Forum

use the vpa indicator from yuvalw


Quoting 

Hi,

Thank you for bringing that issue up, I wasn't aware of VSA and found it very interesting...

1) I compared the code to the AFL version and fixed some differences (in trbar, hutbar and stdn0).
2) I Changed the variables names to be meaningful so the code will be more readable and maybe other members will feel more comfortable with it.
The original variables names are in remark in the "VSA Definitions" area so a reference to the AFL code can be made.
3) Removed unnecessary DataSeries to save some bits of memory.
4) Added property to determine whether to change the price bars color according to the trend (default is false).


And here is a Legend to the symbols as I understand (It is also in the cs file).

Red Square - UpThrust bar.
Blue Diamond - Reversal possible, yesterday was high volume wide spread up bar, but today we reached 10 days high with low close wide spread down bar.
Red Triangle Down - UpThrust confirmation.
Lime Square - Strength bar (either strength is showing in down trend or a supply test in up trend).
Yellow Triangle Up - An Upbar closing near High after a Test confirms strength.
Lime Diamond - Stopping volume. Normally indicates end of bearishness is nearing /OR/ No supply.
Lime Triangle Up - The previous bar saw strength coming back, This upbar confirms strength.
Blue Square - Psuedo UpThrust, A Sign of Weakness /OR/ A High Volume Up Bar closing down in a uptrend shows Distribution /OR/ No Demand.
Blue Triangle Down - A Down Bar closing down after a Pseudo Upthrust confirms weakness.
Yellow Triangle Down - High volume Downbar after an upmove on high volume indicates weakness.
Aqua Triangle Up - High volume upbar closing on the high indicates strength (in short term down trend).
Deep Pink Square - Test for supply.
Turquoise Diamond - Effort to Rise. Bullish sign.
Yellow Diamond - Effort to Fall. Bearish sign.

Yuval.

Original post and indicator
NinjaTrader Support Forum - View Single Post - VSA Indicator - Beta

 
  #13 (permalink)
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i will also say thanks to bring back in mind ...

nice weekend and best regards from germany
wh

 
  #14 (permalink)
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I spent the last 1.5 hours of trading watching the time and sales and the order book in the Dome for ES.

I didn't mean to spend that long, but I became engrossed in watching the battle between buyers and sellers, particularly near resistance.

Large block orders on the Ask made the price trickle over the resistance, which caused a sudden influx of new buying orders. Buyers hoping that the coast was clear to drive the price upwards.

Wrong. Sellers jumped in and stalled the price. Orders below bid came in and knocked the price back below resistance (now support). Sellers then dominated as price edged to the lower Bollinger band.

Another epic battle between block volumes at bid and ask and price moved upwards to the SMA20 as buyers dominated. Orders above ask driving the price up a tick.

90 minutes watching that! Yep, but it was worth it.

What is obvious is that it is the continuous battle between bid and ask volumes that drives the price.

That battle becomes fiercer at support and resistance levels.

Although the BB and SMA were influencing price action, they were just triggering support and resistance skirmishes.

The "smart money" investors placing big block trades of 350+ contracts were just as wrong as I can be when sellers stepped in to reverse price below that broken resistance. Getting stopped out with 350 contracts must hurt.

I'm going to spend more time watching the T&S and order book. You learn more about what really drives the market than any indicator can tell you.

David

 
  #15 (permalink)
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Lolu,

Sorry, that is the language that I have learned. Maybe you could start a thread on what you know best. Just a thought.

GarryM

 
  #16 (permalink)
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That is correct, its Infinity Futures DOM.

 
  #17 (permalink)
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Reading Price Action

Guys,

Thanks for the interest in one of my favorite topics, Reading Price Action.

One of the things that I want to make perfectly clear is that I use indicators, always have and probably always will. For me to tinker with their setting and see how many bars they
are behind the price action is always of interest to me. Do I need them, not at all, but they sure make trading more fun.

The DoubleMaPaint_Sharky is one of my favorites, (Thanks to Sharky & TheWizard) using that in conjunction with candles is just another thing to lessen the load of staring at candles.
It is very important to trade with whatever tools give you the most confidence and comfort while trading.
For me, indicators can almost be a security blanket, it's like you have a master trader always keeping you on track, and at the same time lessen the stress of trading, especially for newer traders.

What I would like to offer to the group is that on weekends, and more often as time permits, I will mark up a current chart that illustrates some of the things that I see while trading.

Your opinion may differ, that is fine, there are probably as many ways to trade the market as there are traders. There is no right or wrong, its only about which things ring true for you, and make you money. The things that ring true for me will be noted on the charts.

One of the things in trading that irritate me is all the guys that teach trading, (books, websites, DVD, seminars) and they themselves can not trade.

About 3 years ago I paid some good money to go to a 3 day seminar from a popular "expert".
One of the things listed in the advertisement was that we would trade live together every day for at least two hours. I thought to have one on one time with a "Master Trader" as he calls himself was worth the money and I would pick up some things to advance my learning.

I knew after the first days trading session, this guy didn't have a clue, but was he ever a great salesman. (Another advertising point was any profits made in the class would be split between the attendees)

After the first days session, I stayed later than everyone and got some one on one time with the Master. I made him a deal, like he made a deal with us to split the profits, that if he could make money while trading with the class I would give him $500.00. I never had to pay out the money and at the same time I learned a big lesson. If you claim the be the Master, Prove it, Prove it, Prove it.

The point that I want to drive home with this story for the newer traders, there is a lot of snake oil out there, find something that works for you. If the things that I say don't mesh the "holy grail" that you are building in your head as you learn, ignore it.

The attached chart shows my first point. If price action can't take out the premarket high it will reverse and go the opposite direction.

Have a great night, another more detailed chart will be forthcoming this weekend.

GarryM

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Reading Price Action-es-09-09-08_28_2009-7-range-1-rule.jpg  
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  #18 (permalink)
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GarryM View Post
Lolu,

Sorry, that is the language that I have learned. Maybe you could start a thread on what you know best. Just a thought.

GarryM

Garry,

I suppose your quoted post above must be referring to somebody else, not me. I never indicated anything "I know best".

I was requesting that you direct me to how to get the Ninja window "Pane" attachment in your post #1 on this thread. I also mentioned that I'll love this thread and I'll want to be able to read Price Action without the need for me to know Candle Stick nomenclatures/jargons (such as DOJI, SHOOTING STAR, HAMMER, etc); and I suppose that is what the Ninja window "Pane" attachment in your post #1 is about. By window, I mean Microsoft Windows pane.

There is nothing offensive in all what I've said. On the other hand, I'm appreciating the thread. I suppose that you could be mistakenly referring to me instead of somebody else.

Lolu

 
  #19 (permalink)
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ESSCALPER,

Thanks for the heads up on the Print+ product, I am signed up for their trial. Is there any kind of an audio alert when the bid or ask hits zero?

Thanks,

GarryM

 
  #20 (permalink)
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hey garryM,
maybe its useful to have a definition of your understanding of what you call "reading price action" right at the begining here :

for me priceaction is the stuff i see on a chart -- the pure price bars + maybe volume.

another thing for me is the so called "tape-reading" -- these are guy that have nothing else than a dome / T&S and pure running numbers in front of themself while trading- mostly no chart at all.

max-td

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