Non-regular bars ?

Discussion in 'Technical Analysis' started by Swarm, Nov 30, 2010.

  1. Well, golly gee! Feel free to bring a green bean casserole to the potuck supper then. :(
     
    #31     Dec 1, 2010
  2. I had already requested that my post be deleted because it didn't add value. As for your thoughtful invite, I will have to decline. I seldom if ever attend Bring Your Own Beans get-togethers.
     
    #32     Dec 1, 2010
  3. Bring mostaccioli in meat sauce instead. :cool:
     
    #33     Dec 2, 2010
  4.  
    #34     Dec 2, 2010
  5. First it would make understanding your posts a whole lot easier if you would simply respond to a comment. We can't tell your comments from the original posters'.

    The reason I invented constant volume bars and use them is because they eliminate the variable aspect of time bar charts. I trade RTH like you but I find that data outside RTH invaluable to reading the overall chart continuity.

    I choose specific volume bar increments as a way to create specific containers perfectly suited to my personal (and others) trading styles; Scalp, Intraday, Swing or Position.

    My containers perfectly interlock. I do not use increments of 7, 14, 21, 28 . . . as you have incorrectly stated. I use increments of 7, 49, 343, 2401, 16807, 117649, 823543, 5764801, etc. These increments never very regardless of the market. Some of my students use increments of 3, 9, 27, 81, 243, 729, etc. Either set will work, it is just that the data set of 3's contains a lot more chart increments and it is a lot more difficult for the average trader to decide the environments they will trade.

    Elementary logic dictates that the only way an accurate answer can possibly be obtained is for all of the information related to the problem be utilized. One can not accurately nor consistently solve ANY problem by randomly eliminating a portion of that specific problem's data set.

    The difference in the number of trades taken during each container isn't relevant. What is relevant are the trades taken inside that container are easy to read & consistently profitable . . . day in and day out. Not only that but that same level of consistent profitability should be easily replicated regardless of the container speed used.

    I used to trade seamlessly. I am fully aware that, "every reason to enter a trade is the exact reason to exit the last one". I came up with that myself . . . ha. You use a reversal to change position, I simple exit at that reversal point to "take a breath". It has nothing to do with efficiency but my effectiveness of performance is outstanding. I simply evolved past the need to be constantly in the market. Just like one breaths, a trader needs the same chance to gather their thoughts and relax during the trading day. It isn't that I can't enter/reverse trade . . . I simply choose not to. As I've told you before, there is more than one consistent way to extract profit from the market each and every day.
     
    #35     Dec 2, 2010
  6. proflogic,

    I am curious what is your take on market delta's footprint charts?

    So one can still chart using volume bars, but with the added information about the bid-ask pressure.
     
    #36     Dec 4, 2010
  7. I find the information interesting and have been playing with them for just a short time. I do find that the market selta and volume bars offer more information than volume bars alone. Sorry I can't be more helpful. When I know more I will post my findings.
     
    #37     Dec 4, 2010
  8. Yes, same here, I am new to MD as well. Looking forward to your findings. Thanks.

    Just to share my take of it, So far what I find of value is using MD as a confirmation tool, and helps with exits. I find the volume breakdown indicator very interesting. I look a lot at divergence between price and a moving average of MD. this seems to work for me in range bound days, but falls apart when the market trends.

    This divergence seems to be more apparent in smaller 5k volume bar chart vs 10k vol chart. Also MD seems to behave quite differently with volume charts vs time based vs range charts.

    Another observation, lets say price is moving up and we see a spike in buying pressure, but price fails to advance further. This very often results in a short term reversal.

    If you like lets compare notes when you are ready. Perhaps start a new thread. I exchanged a few emails with other users of MD, and one complaint I hear is that Md is great for analysis but hard to build rules around it to trade from.
     
    #38     Dec 4, 2010
  9. mark1

    mark1 Guest

    There's an indicator called "Time per bar" that's quite useful used with CVB, it's basically a histogram like the "regular" volume, but it calculates/plots the time it takes to complete a volume bar, when you get long histograms it means it took more time to build the bar, thus low volume , the opposite for high volume. It's a bit counterintuitive if you are used to volume histo but works pretty well when you get used to it

    I found a link in my bookmarks http://www.traderslaboratory.com/forums/f46/time-per-bar-1465.html, but I think I have another piece of code saved somewhere, let me know in case you are interested and I'll try to find it
     
    #39     Dec 4, 2010