Futures Trading, Custom Programming, and Commentary

5 Responses

1. Bass Ackward Trader Says:
   November 30th, 2007 at 3:11 pm

   on these range charts, an interestng thing happens around swing points…the volume increases dramatically, and drops off as it rises maybe one or two more bars…sometimes, it consolidates at this level, and other times it rolls over…i don’t mean to suggest that you can enter a long or short on that information alone, but if it coincides with a swing high/low, or break point, etc., its worth noting

   i think its a good alternative to tick or volume charts…personally, i added it to the mix today, and am quite pleased with how it pulls patterns out of what looks like noise…another benefit, is that i can caluclate ahead of time, exactly where my entry point would be before it triggers, since i know what level it will be to create a new bar

2. Bass Ackward Trader Says:
   November 30th, 2007 at 3:13 pm

   maybe this will make the point clearer…when volume increases on a range chart, and tapers off while it incrementally rises — or stands still — that seems like an inflection point

3. Richard Says:
   November 30th, 2007 at 3:17 pm

   in “Hersheyan SCT Lore”, one mark of a turning point is rising volume into the turn, with less volume initially at the turn, followed by increasing volume as it starts to move in the new direction. So, I think you are agreeing with that, right?

   On range bars, I personally am leery of the way they make noise prettier. Pretty is not necessarily tradeable, you know? But, they have a lot of the same benefits as PnF charts, so I am overall sold on the range-bar concept. Yeah, trading PnF charts the last couple days, most of my entries are stop orders, since I know in advance where I will get in. Kinda nice.

4. Bass Ackward Trader Says:
   November 30th, 2007 at 3:34 pm

   similar to the concept of buying/selling drying up? correct…actually, that is where i read it…however, as i said, it needs to be near a point i would make a trade…its just simple confirmation

   i probably didn’t express that right, or i may just be wrong! but we agree, kinda nice…it’s part of my setup now…i reached my goal for today, so i’m just sitting out

5. Bass Ackward Trader Says:
   December 1st, 2007 at 1:35 pm

   i may still be wrong, but i thought of a way to at least convey the concept correctly…on a daily chart, you may not see any trades during a time of congrestion…however, on a 5′ chart there could be many trades that trigger…its the same thing with this…what i’ve noticed is that some of these consolidation zones are quite large…i tried dialing down with even a 30 second chart (yeah, i know, u don’t have to say it)…there would be trades there, but it wasn’t something i wanted to trade…i was just looking around…i did like tick charts, but i have trouble with the concept of a trade for 1 contract = a trade for 100 contracts…its still one tick…i’m going off the subject a bit, but let me take it back to range charts…some of the patterns i have been playing were not showing up on the 5′ or even 3′…however, when i used a small range chart, there were definite W bottoms and M tops within the range that are playable…a 4 or 5 pt. gain/loss in the NQ is opportunity

   so in a nutshell, its not really filtering out the noise, but its giving me a playable pattern even in a rather large chop zone (i hate that word)…the good thing about the range chart is that it paints a picture if one needs to be painted…i’m operating from the assumption that any timeframe is valid, but the shorter the timeframe the more false signals that may be gererated…however, i’ve been playing mainly reversals, and this is perfect

   as i said, i may still be wrong, but that does a better job of conveying my thoughts at least

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