Cumulative Volume Histogram StkWiz, perhaps I didn't explain the histogram properly. The cumulative net volume is contracts traded at the ask and bid. The histogram goes below zero when there are more contracts traded at the bid for the day. Note on the 5/19 chart the second test of the low. You can see that selling had dried up and the histogram had turned slightly to net buying.
Problem is that in reality you will see that( those ) bar 1-5 min after all happened so entries are not possible at those bars. If I am wrong, please, explain . Thanks
The volume displayed on the right side of the screen is the total number of contracts traded at a particular price over a given number of days. I usually go back 360 days. If one follows our rules (3-2-1 methodology) then the chart will reveal low volume prices and high volume prices. Low volume prices act as support or resistance. High volume numbers act as attracters. Markets will move from high volume numbers to low volume numbers. The volume display is extremely valuable. The aggregate bis/ask histogram on the bottom of the screen is not used as an indicator to enter or exit a trade. It is an additional piece of information that reveals the overall bias for the day.
You are correct. There are hedgers in the ES, however, the overall percentage of ES hedgers is less than the overall ES speculators. Exchange CTI codes indicate that the ES participants are 4:1 in favor of speculators. The US Treasury futures complex is approximately 1:1. In other words, the same numbers of hedgers and speculators.
Pardon my cynical question but this is trading, just like the X-Files I trust no one for I think everyone else is a competitor, especially in futures trading and as far as vendors, snake oil factories. Question is simple. Why spend so much effort and time presenting all these nice charts and detailed analysis for the sake of selling your technology ? Why not use your own technology and methodology to produce your income? Honest questions, no flames. Looking forward to your reply. Susana
Why Not Just Trade For A Living The big picture answer is that we do trade for a living. Doug Zalesky has been a trader in the CBOT Bond pit for over 20 years. Charles Cochran has traded equities and futures for almost 30 years. And they continue to trade even now, but on the screen. The fact is that they own a business, Trademaven Group LLC and Trademaven Inside Edge. The business incompasses analysis, education, and clearing. They are actively involved in all aspects of this business. Their personal trading is only a part of what they do. There are good guys in this industry that genuinely like to see others succeed. I consider myself among that group as well, though I have only been trading for 5 1/2 years. I have met my fair share of "rats" in this industry as you and many others have as well. I have spent more money on, shall we say, underperforming methods than most. But there are also a wealth of "good guys" that are analysts, IB's, software providers, FCM's, and just traders. It's easy to become cynical when you've been taken to the cleaners by one of the rats, but that certainly isn't everyone. I don't know if I've adequately answered your question, but if not, just PM me and I'd be glad to relate my experiences, both good and bad.
Your question has merit. The fact is that over 20 years ago I learned how to trade from Pete Steidlmayer (the creator of Market Profile). Pete also sold software (Capital Flow) of which I purchased and used for many years. Proper education and marketing are not mutually exclusive. TradeMaven Inside Edge has already proven the concept. The students in the room have improved their trading performance. You have every right to be jaded. There are too many snake oil salesmen in the futures industry plying their wares on the innocent who just have a desire to improve. We hope to change the educational landscape. Proper information is vital to your success. I invite you to take a look. If the 3-2-1 methodology appeals to you then great. If not, I hope you find something that works for you.
Thanks for an explanation. Do you mean that cumulative volume of 360 days makes determination what the recent attracters are ? Thanks,
It's cumulative volume at each price for the last 360 days. An example: In the 30 Year Bond Futures: 115.01 is a Low Volume Number and 116.15 is a High Volume Number. Over the past 360 days the volume at 115.01 is only 95,000 contracts while the volume at 116.15 is 550,00 contracts. Since January every time the Bond traded down to 115.01 it when right back (over time) to 116.15. Low Volume nubers are support (or resistance) while high volume numbers attract activity. BTW....Low and High volume numbers work in all (any) time frame.