Aaah. Now we're getting intimate... To be quite honest, it's very difficult to explain how exactly I use the patterns on depth. It's hard to describe them, vague at best in a short description. I could seriously brainstorm and write a whole book about it, but it's hard to put into a few words, because the patterns are plentysome. Yet I'm not kidding, you can watch the depth very closely for some time, do diligent observations and note them down or record on dictaphone if you like! The more you read depth, or tape for that matter, the better you will get at it. Trying to describe that in detail is like trying to describe sex in detail. Yes, it's all very picturesque, but you can't practice it unless you've done it and observed yourself. Go and load the depth and watch it for a really long time. See what happens - be amazed! Yet mind you, most of the time, depth isn't necessarily a good singular entry criterium. As you get to understand depth, you need to go back to verifying the action with the charts & tape. In fact, you verify the chart & tape action with the depth action. Learning about reading depth is about fine-tuning your entries and exits. If you do trade depth only, you cannot go for more than 1-2T at a time - generally. Myself, I will first focus on my short-term charts and correlation, then fine-tune on the depth. I will tend to keep my eyes glued to the depth until I get a bit of tolerance, like a couple of ticks at least. If depth doesn't comply / behave nicely enough, I will jump out. There are several strategies that work well on depth trading, such as one I call the "fishing hook", where I trade toward a "resistance wall", exit 1T in front of it, then reverse and take at least 1-2T of the ensuing correction and exit again - Price will tend to "bounce" off support/resistance levels, at least a little bit, to fake out people or simply shake out a few that changed their mind. At these times, this works better with resistances than with support - Supports tend to break / melt much faster, because of the nature of fear and greed. The many strategies of depth trading are plentysome, but as said, too much work to detail here. What you're mainly looking out for is the depth/volume pressure on various levels, their quantity of diminishing / increasing, the speed of their diminishing / increasing, collapsing levels, building of tiny-term supports/resistances, as well as particularly bids or offers being hit and the corresponding quantity (you need to have an eye on both depth and tape to do this, because the tape gives you the executions). Yet mind you, chances are your tape feed with buys, sells, highs and lows is delayed by 2 seconds, so factor that in! As for on-chart volume - That's pretty easy. High and particularly increasing volume tends to confirm a move, low or decreasing volume tends to negate it. Volume climaxes tend to be a reversal sign, as well as a sign of neutrality or coming low-range, since they often blow both buyers and sellers out of the market. And if there's very little or no volume, reversal is very likely, too. Jack Hershey has written extensively about the price/volume relationship, he understands that bit better than anybody I can think of. As a general rule, all markets tend to follow the path of the highest volume - both on-chart (actual sales) and on-depth (prospective sales) Hope that helped. S
Hello Scientist, What are your results, net of commissions, * are your correlations with es, ndx based on mean reverting intraday models or just feeling
Yes, I use ButtonTrader and IB for the Eurex exchange trades. Here's the DAX setup. Sorry for the bad image quality btw, some silly uninstallation just dodged my Photoshop, which I can't re-install because my CD-ROM just died, I'll have to wait until shops open again... So I had to use Windows' most inferior "paint" or whatever it's called. But I think it's clear enough to clarify what's on there.
None of your business - LOL Neither. It's mainly about correlation in volume depth (supports? resistances?), as well as new highs/lows on various indexes. One index or two might make a higher / new low, while the other won't. But they may soon follow. It really depends. Well, it's mainly highs & lows, but also relative movement. None of it really is "feeling", but rather quantifyable, in terms of delta or whatever you like to call it. Not feeling, rather observation I'd say. With the latest eSignal (7.5), you can put multiple symbols onto one chart, by the way - If you overlay correlative media as line charts, you can actually visualize the spreads / differences between the indexes.
Now I'd really appreciate if other DAX scalpers started contributing and exchanging some good material. As said previously, that's the purpose of this thread. If you think I'm giving you all a free DAX trading manual here, tell you every trick of the trade and answer every by-passer every question he's ever encountered, then you're dreaming. Get going, get something mutual happening, get some real traders here, or I'll leave. Have a nice day! Scientist.
I have tried this before, Scientist.....it aint' happenin' Michael B. Get going, get something mutual happening, get some real traders here, or I'll leave. Have a nice day!