I don't think that any sane person would actually believe that PA does not exist, here's my question though... Charts have progressed through the ages, but PA has always looked the same, moved the same in terms of how it is represented on a chart. Do charts matter?
Sure, you have; yearly, monthly, weekly, daily, hourly, minute, second, tick, volume/share, range and constant volume/share bar charts. Out of all of those the only non variable chart environment amoungst them is the constant volume/share bar charts. As long as you have a variable nature built into the charts there will be unnecessary noise infused into that chart which adds to the confusion and distraction of reading that chart with any consistency. No variability . . . less noise. Less noise . . . smoother flow of price movement.
Yeh, but charts alone will not give imformation about what contracts are on offer. I agree with what you are saying, and charts offer a glimpse into contract exchange in the context of the cycle(s), but would contract exchange differ if there were no such thing as charts. Very hyperthetical, but i believe charts don't make much of a difference in terms of exchanges. Just some food for thought (hopefully).
Proflogic, In terms of using volume bars, how do you factor in the time they take to print. For example, when a 10K bar prints on the emini quickly, does it change the way you interpret PA? Is this what others call velocity or momentum -- The action speeding up? So do volume bars take into consideration time by how fast they print and how many print within a time frame? Do you use this in making your desicions?
But they do exist and the charts show some of us consistent direction and strength of price movement so your hypothetical, though thought provocking, doesn't apply, at least to my real environments.
Why was JHs post removed? That was one of the most interesting posts i've read on here. Good post, Jack.
Fair enough. I use the DOM, i also have charts running (because they do exist....and are a real environment). But i know i shouldn't really need the charts. I suppose i'm a bit of a dumbo.
Yes, speed replaces time because time isn't relative to trading, othere than when the market is open and available to accept trades. Shares or contracts aren't traded in time they are traded individually and in groups. There is no consistency to how many shares or contracts are traded per minute (or any other time or tick increment) but there is perfect consistency in a constant volume/share bar built on 50 contracts/shares or 100 contracts/shares, or 500 or 678 or 8943 or whatever number you choose. I personally build my charts fractally in increments of 7 so I can see how price develops and progresses across fractally increasing and decreasing chart increments. My decisions are based on the oscillations being created within those fractal environments. Those oscillations give me a consistent view of direction and strength as it relates to that individual chart.
No, you are not a dumbo . . . use the tools you are familiar with and that benefit you. If there is a tool you aren't comfortable with (charts), ignore them for now.
Thanks, PL. I meant what i said in a humorous fashion. You are correct in what you say about being comfortable. Good trading.