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CL Light Crude Analysis TPO/MP/VWAP/VPOC


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CL Light Crude Analysis TPO/MP/VWAP/VPOC

  #401 (permalink)
 
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 Private Banker 
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Market saw rejection at the ON low which was an excellent initial trade location on the day. As the day has progressed, you can see how there were buyers at each key level.





We are trading within a new bracket area and a high volume area. Very neutral at this point but the intra-day one time framing has to be respected.









As for which VWAP to look at, its best to use the ETH first thing until the market has shaken itself out and presented its intentions. This often falls within the initial balance period. Reason being, the majority of volume in CL occurs within the RTH period however, it takes some time for VWAP to calculate out and start to become a good point of reference. I would warn that you should not take trades off of VWAP levels simply because its hitting an outer standard deviation. Trades need to be within context of the bigger picture which is easily viewed from the TPO structure. Also, think of the RTH VWAP as the day's developing value with the ETH being the ON session's value and point of reference.

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  #402 (permalink)
 kulu 
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Private Banker View Post
Market saw rejection at the ON low which was an excellent initial trade location on the day. As the day has progressed, you can see how there were buyers at each key level.





We are trading within a new bracket area and a high volume area. Very neutral at this point but the intra-day one time framing has to be respected.






As for which VWAP to look at, its best to use the ETH first thing until the market has shaken itself out and presented its intentions. This often falls within the initial balance period. Reason being, the majority of volume in CL occurs within the RTH period however, it takes some time for VWAP to calculate out and start to become a good point of reference. I would warn that you should not take trades off of VWAP levels simply because its hitting an outer standard deviation. Trades need to be within context of the bigger picture which is easily viewed from the TPO structure. Also, think of the RTH VWAP as the day's developing value with the ETH being the ON session's value and point of reference.

Thanks @Private Banker. On a different note, I was playing around with the TPO Price Per Level setting and noticed that changing that setting changes the profile levels (VAL/H, POC). Is it just the Rancho indicators that do this or is this the case with other TPO indicators. How do you decide what setting to use? The larger that number is, the more the levels are off, but the better the resolution.

Thanks

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  #403 (permalink)
 
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 Private Banker 
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kulu View Post
Thanks @Private Banker. On a different note, I was playing around with the TPO Price Per Level setting and noticed that changing that setting changes the profile levels (VAL/H, POC). Is it just the Rancho indicators that do this or is this the case with other TPO indicators. How do you decide what setting to use? The larger that number is, the more the levels are off, but the better the resolution.

Thanks

The price per level is a personal preference but for CL, I prefer a setting of 3. This provides enough detail while drowning out some of the noise. This will vary based on the market in which you're looking at of course. A small range market may not need price level consolidations while large range markets require more. Its really up to the trader to decide what works best for them ultimately.

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  #404 (permalink)
 kulu 
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Private Banker View Post
Market saw rejection at the ON low which was an excellent initial trade location on the day. As the day has progressed, you can see how there were buyers at each key level.





@ Private Banker

Are you using the Rancho VWAP indicator?

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  #405 (permalink)
 
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 Rad4633 
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@kulu
Rancho Dinero

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  #406 (permalink)
 
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 Private Banker 
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kulu View Post
@ Private Banker

Are you using the Rancho VWAP indicator?

For my half deviation levels, yes.

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  #407 (permalink)
 kulu 
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Rad4633 View Post
@kulu
Rancho Dinero

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@ Rad4633

Is your VWAP rancho's? I don't have the ability to shade different VWAP zones on my indicator. I see that the MP and VP tools are rancho's, I was just wondering about the VWAP. @Private Banker seems to be able to project prior levels onto the current day as well, which I don't think rancho's can do (by the way, I have asked Troy to added that property to his VWAP indicator)

Thanks

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  #408 (permalink)
 
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Nice reversion trade under way here. Market auctioned up and finally found sellers. Took a bounce off VWAP and the short entry made perfect sense from the DVAH.






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  #409 (permalink)
 
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 bobarian 
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Hey Ben, good to see you back...That last short,was the fact that it stopped one time framing a big part of the reasoning?

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  #410 (permalink)
 
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 Private Banker 
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bobarian View Post
Hey Ben, good to see you back...That last short,was the fact that it stopped one time framing a big part of the reasoning?

Thanks Bob! The thought process there was simply that the market became imbalanced and auctioned higher to find sellers and traded outside of "value" and up to the 2nd IB extension. The market then became back into "value"/balance (not IB) where two way trade was coming back into the market. A short down to the DPOC/VWAP was a good probability at that point. Again balanced market to imbalanced back into balanced.

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