In reply to Jack Hershey's post...I couldn't quote it because it was so long winded it exceeded the ET limit for a post. LOL And I'm not kidding. So that was the long winded version of what I said the way I read that. You added lots of big words and cryptic methods of communication for what purpose? You seemed to be saying respect supply and demand laws. I think more often price is what drives volume not the other way around as you suggested, but thats JMHO. A step further, I think you contradict yourself because to your channel comments, the market is rangebound the majority of the time. It respects the range most the time and if volume did drive price this range would not exist. When it doesn't respect the range you shift to breakout mode provided that the break in range is on major volume showing a change in market sentiment/value. I also found it comical you say you don't need or want an edge. Reading DOM and channels would be your edge IMO. Speaking of DOM, I find it to be more misleading than anything now, though I use more of my screen time on the tape at this point. DOM has lots of orders being pulled and falsified creating fake walls where tape shows true market actions. I don't doubt you know what you're talking about, I think your making it very convoluted to throw people off the right track or make it harder than it is. That's not to say I think the market is easy to dial in, just that the game is pretty easy with the hard battle being in ones own head. It's you versus yourself, not you versus the market. Because to battle the market is a losing battle. You said this but in some interplanetary language that non aliens won't understand I think. JMHO
Thanks for your critique. It was too late for me to delete it; there is a 30 minute limit for posters.
I don't have the grail, I have just progressed to where I was able to chuck a ton of random junk on the random junk pile and get on with things and even maybe understand what Jack is talking about a bit as well. I am pushing towards something very simple that can be automated however and am quite happy with the progress on that. I will say that the advent of the personal computer has brought a ton of confusion to traders because it is easy to make indicators that use nothing but price data to predict price, and mathematically, that is not possible. Wyckoff wrote about price interpreted by volume a long time ago and Toby Crabel wrote about volatility predicting volatility a couple of decades back, reading those two authors is a good idea. I'm exploring an odd thing currently that is raising questions for me. If I offset the begin time of all the bars by offsetting the begin time of the day it has an effect on the overall outcome. I also find that I'm using essentially two systems overlaid and when the offset takes one of them down it improves the other... curioser and curioser..
If the tape is the only thing you ever master, you'll do very well. If you can master reading price patterns alongside the tape, you'll do very very well. Based on your succinct take on how to read the market, I think you're going to be one of the very few who eventually make it.
Thanks Maxpi and Jack Hershey !!! I'm going to read Crabel and Wyckoff. Could you please write a little bit more about your methods ? Thanks
Thanks for the support and HUGE compliment. I have read posts from people that can trade solely off the tape. I'm putting in lots of screentime, I doubt a book could ever teach one how to read tape. There's no substitute for watching day in and day out what it takes to move the market and the levels for that specific day IMHO. I don't really like the Ninja trader platform overall but the replay function is great for playing back 2-3 week old data and watching tape and the chart. It wasn't until I removed the live aspect and could separate the daily distractions using replay before I started to see the tape patterns. Late at night with nothing but me, a chart and the tape I stare and practice. I also have 2 tape's running, 1 for big lots to filter out the emotions of rookies like myself. That's not to say enough rookies can't effect the longer term path, but most often you can see the big boys step in to fade the rookie emotion after it reaches an excessive level. They didn't get to be big boys by being random and I like to follow them in hopes of joining the ranks someday. Whoops I gave away another tip. It's ok cause I think most will ignore me and discount me with such a small post count and admitting my market experience is somewhat brief. :eek:
On Ninja trader as well as Tradestation you can run multiple instances of tape. You can apply filters to them independently then. It's night and day after you tweak it out to your liking and see the different types of volume. And I'd say don't worry about others styles so much as developing one that fits your mentality. That's key cause what works for one person probably wont work for another. Another key is screen time and not looking for shortcuts. Then you can filter what works and all the other crap just ditch. I remember just half a year ago when I sported like 20 indicators and wasted so much time watching indicators. They all lag, only price action is pure and realtime. As soon as you learn to read that the rest will fall into place. Be persistant and good luck.
Well there can only be 2 answers...YES or NO. I can't decide which, but what I do know is our options are below... 1) He dosen't know crap and is actually an English major that likes to hear himself talk at great lengths. 2) He is profitable and is trying to make everything more confusing than it really is to keep people confused. Just my 2 cents
-------------------------------------------------------------------------------- Brilliant post Jack, thanks for your time. The folks around here don't appreciate a good thing right in front of their eyes.