http://charts.dacharts.com/2008-08-03/2008-08-03 10-25 ES #F V10000.png I'll start off leaning to the sell side tonight unless 1260.50 is taken out. "Longer" term watching 1263.50 http://charts.dacharts.com/2008-08-03/2008-08-03 10-28 ES #F V100000.png
<i>"Austin, I suggested her the 5 second chart (with volume) to look inside the entry formations of the 10,000 but she thinks multiple charts will just reduce concentration so scaling into her entry is the only thing I could think of to avoid the no fill runs that screw with her mind."</i> One of the common objections on working with more than one chart is potential for conflict in signals. Truth is, there can only be conflict if the trader creates that in their own mind. Let's say we settle on trading a 10k volume chart for ES. Good choice, it is a slower setting that filters out much = most random noise between true swings. That is our chosen chart, we define swings and trends based on this view of the market waves, nothing else is relevant. In other words, this specific chart is what we consider "the market" for our own use. If that is the standard by which we measure waves and trends, using a smaller = faster chart to see inside those waves cannot create conflict. When the 10k-V chart is bullish, it doesn't matter if an 89-tick chart is flashing sell signals. Those are totally irrelevant to our definition of waves and trends. Right? The only signals that matter are buy signals off an 89-tick (or 5 sec, or whatever) chart when the 10k-V chart is bullish. Nothing else matters, nothing else exists but that. * The conflict comes from watching failed setups on 10k-V chart signaled early as reversals on the smaller chart. Because retail traders naturally want to see every single turn and profit from every single entry, they are drawn to the faster action in a small chart whih showed a successful trade opposite the 10k-V chart. We quickly forget the five other fade trades off smaller chart signals that failed miserably... while sticking with 10k-V directional bias made money each time. We tend to clearly recall the infrequent times where a fade against the 10k-V chart worked... emphasis on <b>minority of the time</b>. See where the conflict arises? In our own mind the ceaseless pull of fear = greed (same emotion expressed in different ways) draws us away from the core concept of a 10k-V chart definition's for waves and trends. If we opt to work from two charts, it's really just a blend of one chart in reality. The filter, core or anchor chart is where our decisions are based. The faster chart is merely viewed to see if/when validated signals are confirmed near key action points on the main chart. Simple as that. The core chart is where all decisions are made. The small chart is where those same decisions are acted upon. Two charts, one view of the current price action. No conflict exists unless we create that in our own mind. Conflict usually stems from fear=greed. Simple human behavior that constantly gets in the way of our getting rich.
SusanaDT Thanks for generating a great thread. I've been following with great interest and have gotten some good ideas from you and others here. I'd like to submit a couple of charts that are kind of in the gray area since volume is not exactly allowed here but there was a disclaimer for volume based bars early on. I am a Market Profile student so my charts are volume at price rather than volume at time. In a nutshell I use a 30 minute profile chart and a 5 minute candle chart. What I hope to show is a way to get S/R levels for days like last Friday where it is easy to get the "why am I trading this chop?" frustration day. I don't want to get into too much MP jargon here but the levels come from the Initial Balance (I use the first 2 or 3 profiles for the IB) , specifically the highest volume level in the profiles as a possible S/R level. On days where the market doesn't want to go anywhere and the chop is getting very annoying the last half of the session can rotate between the IB peak volume levels. So the levels can be used as targets/fading opportunities. The YM chart shows this better last Friday than the ES. I have the levels shown in the profiles and the matching area in the candle chart to see the comparison. This stuff is a little different from the PA so far in this thread but hopefully will still fit the definition. ( and hopefully the charts will post or this won't make much sense)
I don't disagree with your assessment but I don't think this chop is anywhere near being over. My read is long at the open to 1263 and a false breakout, eventually, to 50 even, before taking out the highest high in the movement, then in turn taking out 1200 after some consolidation there. If anyone agrees with that going only on PA I'ld be impressed.
Anek - How are you able to get a chart with 5 second bars on TS? As far as I know, they haven't released the ability to plot time-based bars less than 1 minute. Or is that Multicharts with a TS data feed? Thanks. Sandy
When you say there will be a false breakout going "to 50 even" what does that mean? Going to 50 what? ... points? If so, that's a helluva false breakout!