PB I have reviewed your recommendations and have a few questions about your setup and the way you would look at the upcoming trade still using our example,
1) I have drew a red arrow to the VAL on the 24th and I see low on the 24th and understand the trade to that level as target, if you have time can you post a chart showing your vwap bc mine isnt there(also do you use rth data only on your charts for calculating this?)
2) trading VA, when market is in Value(vwap would be flattening at this time too,correct? then trade to each side until it comes out, I used to follow shadowtrader TOS and the way he traded it. His rule was once in value 85% chance going to other side, so is this how you recommend until PA comes out of that range?
The following user says Thank You to Rad4633 for this post:
Not sure what session template you have there but I do prefer to look at the RTH value and poc levels. As I mentioned the other day, the market opened right at the VAL from 8/24 and sold off from there. Market tested it again during the last hour of trading and was still a point of resistance. The day was really just an auction out of range where price rotated/balanced within the lower distribution of 8/24. Note that the value and poc levels I have here are with a 3 tick rounding/smoothing and are set to overlay on a 1 tick TPO which is why you may see those levels not aligning perfectly with the TPO levels. It also appears that you are looking at volume value and poc levels which will sometimes be different than TPO value and poc levels.
With regards to price trading within value, that is a long explanation but generally, in a trending market, price will be out of value/leading value signifying an imbalanced market. A trending day with VWAP will show price remaining on one side of VWAP and either respect VWAP or the first standard deviation level. When price is rotating in and out of value it's simply a rotational market. VWAP should be relatively flat on rotational days.
As for the 80% rule, it also should apply to the VWAP standard deviation bands and IB levels.
Hope that helps and makes sense.
The following 4 users say Thank You to Private Banker for this post:
Things that I ll list in my journal, My exact entries, Ninja has a option to show this, no bs here, Because if Im wrong you'll see it and also I can take constructive critism for a bad move and why i shouldnt have taken it, becuase IMO if no one knows only you lose $$$, but if everyone sees its your reputation which I regard extremely high.
I'll try to list why I take trades, I'm not much of a typer that's why its taken me this long to start a journal, but I am eager to learn more from others and define my mistakes in public which will better me down the road.
I'll also list the emotionally side of it, especially on bad trades and what affected me, just like today my first two trades I shouldnt have been in the market dealing with life issues so my mind wasnt focused enough. my issues were more important than the money on the line, next time I wont trade at this time
For now thats all folks
Last edited by Rad4633; September 4th, 2012 at 08:25 PM.
This trade here is the reason only trading a certain part of the day makes one reconsider trading all day. Text book perfect wasnt it for a system like @creekboy. But on a different note it was nice to have taken the day off after early am trades to have lunch with a old friend
Im trying to find the balance between trading and outside life
Last edited by Rad4633; September 4th, 2012 at 05:53 PM.