What?! Get access to volume (I pay 12 euros a month or something with IB) or monitor/trade/discuss an instrument where you do have access to volume. Volume is not a "nice to have" it's a pre-requisite.
Why would anyone who is serious about learning these concepts handicap themselves like this... Gucci, If you are serious, then get serious and get your platform set up. It is not called the Price/Volume relationship for nothing.
How were we supposed to be able to trade Forex then? What about the relationship between volume and vola? What do we need it for then? I guess my 2min Dax chart provides this additional degree of freedom I need.
Gucci, the guys are trying to help. No sense in putting the cart before the horse. Get volume data, or go one better and join us on the ES. Collaborative iterative refinement is much easier when we're all on the same page.
I apologize, if my questions sound offensive. (I just can not understand why). I appreciate what guys are trying to do.
We can accomplish a lot here. Whatever path that comes along is okay. We have the status of things fairly clear now and we can move from that point onward to getting to a set of goals. My initial suggestion was to put up esgements of the day where each sgemnt displayed a complete channel starting with the FTT and ending with the FTT. That turns out to be not possible since the market Gucci is trading doesn't have a supply of data that makes trading using SCT possible. The P, V relationship is what generates the channels, traverses and tapes in which volume and price move. Some choices come to my mind for consideration: 1. Trading is an easy way to support any life style once knowledge and skills gained through experience are available for use. 2. Using a market that provides information is a good way to go to acquire what is needed to make money. 3. A lot of people can benefit from traders who are rich andso it is a good idea to support any potential trader getting up to speed ASAP. For me, I want to get Gucci past his current situation and to do that I feel I need to explain what it is that he doesn't understand. Here goes. Most people learn the way they do because of their family, environment and prior formal learning experience. SCT was done in a syllabus in ET for a year and followed up for a year and 1/2. So good record of the process is available in several forms. Among others, monthly volumes made by a contributor. This serial record was created to make it possible for anyone to repeat the process at his own speed. We did not cover how leaving out volume and using volatility as a substitute for volume works for a market like a currency, or currency pair market. As in any form of successful trading, any thing works as long as it is rational and complete. I do this process anyway and at an expert level it is really very rewarding. Next to my screens on this machine I keep a file that is over an inch thick and it is the transference of the panels on the display and the Excel spread sheet of a market variable and it's analysis in terms of the variable's character and specifically it's volatility. Here is what you need to have on your display panel and then you need to process the display (mentally) at fairly high rate compared to the human limit for processing: 1. 15 degrees of freedom shown and understood 2. A way to understand the change of the nature of the market. A calibrated derivative measure that is very informative. 3. Trigger values for knowing what state your trade is in with respect to the PV relation. If you need to go from a display panel (monitoring) to an analysis mechanism before you deal with the decision and action for doing Timely trades, you need a 26 column Excel and a new data row would be added about every 15 seconds (optimally). Read like a T&S of sorts. Where you are putting yourself is very far away from the syllabus, those who work together, and any possible help. Where you are now... is to do annotating after the fact (so it is not helpful). You do not annotate on the three levels. You do not have volume leading your price annotations to assure that your price annotations are always accurate and complete.. I can walk you through learning to annotate price, but I would rather that you have a market to make money off of that supplies good and complete data. You do not know how volatility works from what you supply to us. If you did you would recognize how to handle it and display it. Personally, I feel that you do not have a handle on SCT as traded on ES. Moving the method to another market is often done and usually it is a market that has data. You are moving the SCT to a volume free market and substituting volatility of price for volume. This is a natural thing to do for a person who needs another market because of capacity limitations of other markets being traded. To add another market to the portfolio in addition to ES means that you should be trading four digit cars in ES to begin with. So, I do not feel you need to go to the market you are trading quite yet. In other's learning efforts, I sometimes notice that they wish to "add" or "invent" adjuncts to "improve" their personal peformance. Ordinarily, even in formal schooling, this is not continued after it is detected by the learner's support service. If this were a cool place and we could communicate easily, then you would be able to respond to inputs you receive. You did respond. You have a high priority of understanding something you do not understand. What I did was present the scope and bounds of doing what you want to do so you can compare it to what SCT is all about. By looking at both, you may be able to consider returning to learning SCT on ES. You may be able to consider that moving this thread to currency and my going through how to trade currency using price and volatility is a considerable undertaking. Having an ATS for this does indicate that it makes money at a high velocity. But that is not the crucial consideration. The crucial thing that is on the table is getting through a learning process for making money. Many people have gone before you or I in developing a way to trade with price and price volatility. Often, I have posted references to them. Others have given you great help here in this thread. I appreciate your posting the charts. I had imagined that you and anyone else who wished would be posting parts of days where a posting was a completed channel from FTT to FTT where one channel profit taking had just finished. "Chunking" the trades, if you will.
This is my DAX chart for Tuesday, June 2. Annotated up to the end of the long channel, which is dinner time here in Singapore. As you can tell from my volume annotations, I expected more from the channel but it did not make it past P2 - no range expansion. So the second black volume peak turned out to be the channel FTT. The red channel was annotated the next day in hindsight. As I recall, Gucci's chart shows the same channels. I have several questions about this but offer up the chart for comments first.