The 3-2-1 Approach: A Simplified Method for Trading Any Market

Discussion in 'Technical Analysis' started by bthomas, May 17, 2008.

  1. Joab

    Joab

    With all due respect to the creators of this software.

    I have found no significant difference between market profile s / r level trading vs swing points on a daily chart as s/r trading, and your low volume areas are no different then open gap trading.

    So why does anyone need your software?



    :)
     
    #51     May 22, 2008
  2. I'd like to know how a person really defines these longer term high and low volume areas? You can have a 5 day distribution that shows high volume but on a longer time frame it may look like low volume....so how specifically does one decide.....I've never seen that question actually be answered without some kind of general statement or some form of subjectivity ( like most trading ideas) but perhaps you can define it...

    Thanks
     
    #52     May 22, 2008
  3. bthomas

    bthomas

    Volume Levels

    The levels we use are as follows:

    F1 Chart (monthly MP distribution) - 360 days of volume data
    F2 Chart (Daily MP distribution) - 180 days of volume data
    F3/F4 Charts (5 min bars) - 30 days of volume data

    Five days of data will work just as well for the F3/F4. There are slight differences between 30 days and 5 days worth of data, but not significant.
     
    #53     May 22, 2008
  4. Thanks for clarifying . I always look at DOM but never saw sell volume and buy volume delivered separately as an independent indicator.
     
    #54     May 22, 2008
  5. bthomas

    bthomas

    Support/Resistance Levels

    Joab, I too have found that by close examination of a 15 minute chart, or a 300t chart, that I can get support and resistance levels in the bond and the ES. They are pretty close and certainly workable for a swing trader.

    But for the short term swing trader or the scalper, support and resistance change throughout the day. We are strong advocates of following the volume. We superimpose the traded volume on both the F1 and F2 charts and do continual splits looking for moves out of the middle. This "look" gives us better information about what is happening real time in the market.

    It is also very helpful to see a "mode flip" when you suspect that you are seeing a volume exhaustion bar forming. A mode flip is where the mode moves from one side of the mean to the other. Another indicator of a possible reversal is decelaration, our key indicator, after a key level has been hit, or at any point in between.

    To summarize, if you hold positions for longer periods of time, you may be able to do well with your subjectively identified S/R levels. We think our software gives you the best real time data for making your trading decisions. To decide for yourself, I'd suggest taking the free trial so you can do an accurate comparison.
     
    #55     May 22, 2008
  6. bthomas

    bthomas

    Software Capabilities

    Here are some ES trades off a 15 minute chart from today, 5/22/08, that highlight some of the software's capabilities.

    [​IMG]
     
    #56     May 22, 2008
  7. How do you access to the CTI for the US Treasury market after the CME-CBOT merger and CME dismissed the publication on January (if I remember correctly)?
     
    #57     May 22, 2008
  8. ZAL

    ZAL

    I don't have a reliable answer for you. The ratios I stated earlier are pretty much accepted from past CTI observations. I can't imagine that the ratios have changed much in the last 5 or 6 months.
     
    #58     May 22, 2008
  9. bthomas,

    Welcome to the world of Reaver, the ET destroyer and resident thread saboteur. Your observations of him are right on, so simply put him on igmore and he'll have no one to chat with but himself. Eventually, he'll go away, but if you engage him be prepared for a lifelong prison sentence with him as the nasty wardon.
     
    #59     May 22, 2008
  10. dont't know whether less spreaders on 10Y vs. 30Y due to the cut on tick size on tbond could have changed that ratio.
     
    #60     May 22, 2008