Jack - this is brilliant. If other people STILL dont get what you are on about, after this very clear and understandable post, they will never get it. The animal analogies make complete sense - watch, note differences, act. Watch your cat, or any other animal - they do this. Always with the goal of survival and enhancement of life. In trading it is the same, with the goals of survival and enhancement of wealth (being on the right side of the markets).
When scalping is it best to trade a stock thats in a trend, or does it matter?.. Also I'd like to get into some scalping so I have two questions: 1. Is it REALLY possible to read the tape/ l2 (no wonder people switch to futures!) With black box trading..i hear people say that the l2/ tape is more noise than anything usefull. 2. That being said, are there any scalpers here that trade off tick charts, and/or 1 min charts? thanks cm
I use tick charts if its rangebound chop. If trending I use 1 or sometimes the 5 minute chart. At times I do mix it up depending on action but those are my main timeframes I use.
Interesting, I'm gonna have to check that out too. Any tips on some general frames of volume you use? Thanks
I'll use 144 tick in a rangebound day for the YM. How do you find the volume different compared to the tick, big difference?
Tick and Volume charts are very close. They both move only when something is going on, and are perfect to catch momentum. I found volume charts to be easier to spot momentum since every bar represent constant # of contracts. With tick bar you can have several very large trades, but every one of them will add just 1 to count, where volume bars will create few bars thus highliting the momentum.