Nov 232010

Yesterday was a strong trend day without any rotations down once the move started.  This happened after the European morning so I didn’t see or trade it.  Here are the charts:

2 day MP merge view:

I drew green arrows for areas I’d like to get long and red ones for areas I’d like to get short.  The naked vpocs are a one shot deal, if price gets accepted there I won’t trade it.  So either quick rejection or acceptance.

Here is the daily chart with composite volume profile:

On this chart if any of those levels are broken, I’ll be looking to exit on a pullback to the level and possibly reverse to go with the move.

Two ideas:

  • This could be the start of a big move away from value on the composite (below, not shown).   In this case I’ll be looking to get long on a pullback.
  • We could have price pullback to half of yesterday’s range.   In this case I’ll be looking to trade both sides on the way down provided it’s not a trend down day.  I’d be looking to get long and if stopped out then get short.  127.57 is an important level because below it is the CVPOC at 127.43.  So this would be the “line in the sand” and if it holds I want to be long.

Here is the renko chart I use for trading.  I am debating between 3min & renko.

The composite volume profile is on the left, and today’s profile is on the right.

I also look for P & b formations on an intraday volume profile.  I’m experimenting with the bar type.

The P or b is “icing on the cake”.  I really like this chart and this replaces my footprint which has way too much information on it.  I like this simple view much better (Thanks to GentleTrader for showing me this view on his blog).  All those footprint numbers (bid/ask) are just too distracting and in my opinion do not reflect reality.

I have one other chart I watch which has a proprietary indicator I’m developing.  I use it for confirming & timing entries.

That’s it.  The renko chart is my main chart.  I have marked all important levels.  When we get there I then look at volume profile & my proprietary chart & the DOM to time my entry and manage the trade.  It sounds so simple but why is it so hard??

I already took one short from 128.34 for 4 ticks (marked by the X with circle, a partial position due to lack of confirmation so just 1 contract).  So the day is off to a good start.

Cheers & good luck today.

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