Its all about "tests"

That run starting at 1262 cash was because the downward trendchannel
of yesterday and today was broken,

 

Okay, well here is the cash

As you can see I have put in a trend line to show the break out

I don't see any problem with monitoring the cash markets.

I prefer however to have the added dimension of volume to work with on the futures side.

 

You may be interested in a thread that dbphoenix has started at t2w:

http://www.trade2win.com/boards/showthread.php?t=20336

Simple S/R is also useful since the tests and swing points are visible to everybody.

 

Yes Mr. Burrows is well known to me as he was an ET member for quite a while.

As I mentioned before, volume spread analysis is an important tool to learn, not only in a formal sense, but in order to develop a real "feel" for how a market is likely to move.

Now, as luck would have it we have come a long a little bit faster than I anticipated. Also several ET members have been kind enough to post in a thoughtful manner about elements of this concept that they find interesting.

Here is what I suggest to you all

If you will look at the volume directly preceding a move up or down, you will see what I mean. Go to a wide range bar on a chart with 5 min bars or candles. Mark it as to time. Then re-size your chart to 1 min bars/candles and check it out. Make note of how volume ramps up just prior to the move. You should see a gradual increase and then at some point, a sudden bump up in volume. Then the move occurs and it "snowballs". Check it out and see if I am right. The final thing to do is to compare volume levels to size of the bar. What you want to do is to see how far price moves on specific volume. This tells you who is winning the war, buyers or sellers

 

Here is another chart of current price action

Note the volume and size of candle as price moves to test the
upper LRC channel

Now if one were to look "into" the candle with 11,738 contracts, I think what you would see would be really help you to "see" how the move develops before the actual breakout.

Just a thought

Steve

 

its all about making $$$, which I do a good job at.

 

Thats nice, congratulations.

That means you really don't need my commentary.

Good luck to you.

Steve

 

Here is that same chart but with the last bar completed and volume noted

 

Good stuff Steve.

 

Here is my last chart for today. You can see how price moves to
test R1 and then pulls back.

Now if you scan left, you will see that price is also testing yesterday's high

I leave it to others to check out the volume.