Tx for the note Mike. Effectively, it will be hard for me to keep my thought in a structured way if I publish my latest info directly into my thread. My doc files are old version (MS Office 2002) so I think any office suite (Open Office, Libre Office, Google Docs) should open it.
I did start a second study in my document while looking at Daily Profile instead of Daily candlestick. It is for week starting on September 29th (week previous of Study 1) still on JCP. It is not completed yet but the charts are setup and day 1 (September 29th) has been evaluated. My goal is still to evaluate volume size when approaching key reference levels in order to evaluate for a potential breakout or a potential return to value area. It is in the attached doc if you want to take a look. If anybody has issues opening my files, I can post as PDF like I did in the past, no problem, just let me know.
Did spent some time replaying JCP from September 29 to October 3rd to get a feel of levels and profile construction in real time. I did add 3 charts in my document and they are all for September 29th with my comments.
Feel free to look in there and comment or ask questions,
Still working on making some light around volume assessment when it come to break (or fail to break) the high of low of previous day. Did change the approach, it is all in the attached PDF, some example with daily profile and 3 minutes charts, no overall recap yet but will get there ...
I think I am done with my volume assessment study as for when we can find responsive volume that will act to return to value area in comparison with volume attracting new participants that leads to breakout. Here is my conclusion (the entire study is in the attached document):
What can we say now about volume assessment when approaching key reference levels ? First, it is clear to me that there is no reference number that can be used like the horizontal line I did draw at 200 000 shares on my 3 minute chart. I will keep my line at 200 000 but I am saying that I cannot use it to reference volume level when it is time to figure out if we are in presence of responsive volume versus new participant volume. Also, trying to follow a MA for volume is also difficult and did not lead to add any major edge. Volume assessment has to be done with the context of the current and near past volume size bars. This is what I did learn. Volume has to be compared to the open, previous day close and current day volume. In order to get a feel as for volume size, you will have to look at the prior day close volume, then at the next important volume spike (which will occurs within the first 30 minutes usually) and deal with that size to evaluate if this sample size did act as resistance of key reference levels or did act as a breakout. From there and only from that moment on that day you do have a volume size as reference. If the 1st important size did act as not being able to break, then this would become your responsive volume size reference number (for example 300 000 shares) for that day and a way bigger volume size would have to come in order break on that day. On the other hand, if you see near same size volume sample (same as initial volume size) at another reference level (or at the same) you can assess that this is responsive volume that will lead to return to value area. I will try to develop an approach that will measure that initial volume size for the day . That initial volume size would either be a responsive volume size (volume that did act as a no breakout) or a volume size that would be a breakout volume size (volume that did act as breakout volume). And from this initial volume size we will be able to reference new volume size that will come later during the day to evaluate if they can be breakout or responsive volume …
Does this conclusion of volume assessment make sense to you guys ? Please, let me know.
I did add a Volume Assessment set of rules, It might change but I think I am going into the right direction. With that I did evaluate each of the last 5 days on JCP with these rules. Feel free to have a look,
Did add a Day Trading Preparation and Trading Rules sections to my document. Did clean up my table of content as well. Did also add a kind of disclaimer note as well. Now I have to finalize my house roof reparation and close the pool today ... :-(
I did play a lot with config on my charts. I think I do now have a nice setup or Chartbook. I do keep the Daily Profile on the right side of the screen since we are used to look at price on the right side of the screen. But doing that I will have Value on the right side of the screen ...
I did add a little bit to my Trading document including one screenshot of my new Chartbook with Preparation Tasks identified on it. The goal of that section will be to identify clearly a nice example with screenshots from start to end with all rules.
Did added some screenshots and I am debating about my rule # 8 as how I should get in ... There is probably no real official answer to that question, it depends on me and my tolerance and patience ... Will take a break and think about that. The last section is not completed, it is a work in progress section but intersing stuff I think.