Did you mean schism? http://www.washingtonpost.com/wp-dyn/content/article/2008/02/15/AR2008021502901.html
It is NOT the total volume traded during a price move (up, down, sideways) that is the factor to guide your trade decisions imo - it is the "NET" affect of the volume traded and who is in control of price (buyers or sellers). This is exactly why I embrace Cumulative Delta analysis during all price movements - to measure who is ACTUALLY in control at every moment (and to what degree of control).
I could'nt agree with you more 5. thats exactly what the chop/volume code does here..http://www.elitetrader.com/vb/showthread.php?threadid=125748&perpage=6&pagenumber=24
Predicted 1420.00 today and got 1425.00. Oh, by the way, i had no prediction on volume. Just watch what has meaning to the bottom line. .. 1 trade, 1 simple mechanical trade DA LINE was 1407.50 +6 line for a long was 1409.00, thats all she wrote boys and girls. I usually keep trades to myself but thought the flock might like this day for DA HOGGIE ..
Bighog, How do you determine exactly by the opening range where the market will most likely go for the day? Could you explain the technique in detail please? thank you
You do not determine where price will go. Thats the idea of the opening range breakout. You let the mkt tell you where it wants to go. My idea of the opening breakout, 1st hours range breakout etc is simple that the days range has not yet been established and you want to attempt to catch that breakout to capture the range about to be formed. A goal also is to capture one-way trend days and many will start that day by getting the day started by a good run from the start. Thats what you wake up in the morning for................RUNS. Hope this helped Ok, almost time for "SHOW TIME GIRLS, lets see some LEGS!!!!! "
Ok, I think I am beginning to understand. Tell me if I am wrong please - you establish the opening range and then put limit orders on either side waiting for it to breakout or wait for "confirmation" signal and then jump in? How do you calculate the opening range? How do you learn these simple signals? How do you filter out noise? You can get easily whipsawed with gyrations as big as 2 handles in ES. That's what happens to me, most of the time I get knocked out with a tight stop of 6 ticks. As you noticed already I am a newbie, I am past the stage of magical trading systems and a screen full of indicators. So far I have been looking at daily ES during regular trading hours for a month and a week ago I started putting in live trades. I am confused and I get stopped out in 8 trades out of 10 and account is down 10%. I am disciplined at taking small losses but they are bleeding me down. I can't seem to get myself "in tune" with the market. I understand "screen time" is a must but need some initial guidance please. I am not looking for free lunch here either, just need some push in the right direction. Bighog, do you mentor?
IMO, a good resource for new traders is collective2.com. Find the "Grid" on the site, and select Futures. You'll find systems and listed trades. Study the charts, get a sense of what others are doing in terms of timeframe, stops, etc. You won't find any secrets, but it should help in your overall understanding. One thing you will find is that for the most part, the more successful index systems listed trade ER, not ES. That's not to say that there aren't successful ES traders. But my experience was also that when moving from ES to ER, the increased intraday volatility was helpful. Something you may want to think about.