start with a blank canvas

Discussion in 'Trading' started by ammo, Mar 29, 2011.

  1. ammo

    ammo

    start with a blank canvas and visualize some trends,
     
    SimpleMeLike likes this.
  2. ammo

    ammo

    add the lines
     
    SimpleMeLike likes this.
  3. ammo

    ammo

    add market profile,this is a 2 year daily,find the nearest price levels and memorize the widest,narrowest spots(nip.cleavage and any flat bars(ledges)the widest spots are where the most trades happened by price,the narrowest is where it traded least,the ledges were large buy or sell areas where orders supported or resisted downward or upward movement,when revisited these spots act as magnets or s/r,combine these numbers with your trend lines,just follow the market,if it's going up you have a support or resistance target,or down the same.....
     
    SimpleMeLike likes this.
  4. ammo

    ammo

    start with the daily and work it up or down ,to a weekly or to an hourly,30 minute,etc until you find a trend line area of support or resistance to trade with and add trendlines,add a 30 minute market profile and notice those widest and narrowest spots as support and resistance of a shorter time frame ,the stop at these points may be short lived but they are good targets for exits
     
  5. ammo

    ammo

    do the same with a correlating market or stock,dow jones transports have agreed with the dow for the most part for 70-80 years,so if we are going up or down they should be doing it together,if the dows going up and the djtrans stalls,it's harder to continue the climb and vice versa,watching the 2 gives you a bigger picture of momentum and its strength or exhaustion of,add a leading stock or currency to your list and you are getting a clearer picture
     
  6. ammo

    ammo

    add the uvol/dvol comparison chart ,it has 4 pictures an up or down trendday,on an up trend day the dvol will flatline while the uvol will climb all day,the chart below is of mar 16 where it trended down all day, the yellow is the uvol
     
  7. ammo

    ammo

    yesterday where it traded in a 3 point range most of the day and the uvol and dvol were pretty even all day,at around 1 pm cst, the dvol crossed up and gave you a warning of an afternoon selloff,when it kept moving above the uvol you added to shorts or closed longs
     
  8. ammo

    ammo

    currently we traded up to the ledge at 14,held the nip at 10,broke and tested the nip at 03,traded back up to the cleavage at 05,the s/r is at 10 and o3 ,we search up and down for buyers and sellers,if we cant get above the cleavage we retest 03,if we break it we move to the cleavage below and ledge at 95, if we can hold 03 and get thru the cleavage we retest 10, 10 -11 is also resistance on the 30 minute trend line starting on mar 16
     
  9. ammo

    ammo

    yesterdays high coincided with the resistance line in spx started in jan,add these trendline targets to your support resistance along with your mp targets
     
  10. ammo

    ammo

    do the same with djt
     
    #10     Mar 29, 2011
    redbaron1981 likes this.