TopGunNote 

@Zachary Standley I took the liberty of marking up the three screenshots you posted this morning. I just wanted to point out some of the things that occurred to me when I looked at what you had posted. I hope you don't mind. I hope that helps. John B

I've been reading wldmans journal ever since you last mentioned it, and it's definitely the most informative journal I've read here at FIO. What leaves the biggest impression on me so far is "time-frame continuity"; a concept that I became familiar with at the very beginning of my "career," but forgot about after switching from one strategy to the next after not being able to tolerate losing trades.. Even with having some knowledge of the concept, I've done a poor job of applying it. Also, I just realized that when I look at charts, I don't think in the terms that wldman does. When I look at candlesticks, I find that I'm more concerned with what price action could do moments or minutes from now (like pivot at a level), rather than pay attention to the reality of the situation (do we have an inside bar, outside bar or trend bar?) It seems that interpreting price action through the lens of "inside bar, outside bar, and trend bar," is much more of an objective and consistent process than my own.. Then add time-frame continuity into the mix.

So, I regret not reading his journal sooner, and I'm glad you kept pressing it. Man, I can be really stupid and stubborn sometimes. Thanks, @TopGunNote.

I'll apply these concepts to my trading, as well as take your advice that you gave me through those screenshot edits. A 1000 volume volumetric chart may be too small of a time-frame for me to really understand what's going on anyway, so I'll go with 15 minute volumetric bar recommendation.. One last thing, your feeling was correct, I was placing my trades looking for price to stop at one of those lines, only if it conflated with an LVN, of course..

Trying this template out today.. If I go down this path, I'm going to need more than one monitor. Footprint, volume profile and market profile charts are minimized.

Maybe something like this?




With your footprint chart behind these charts, so it's only one click away if you want to see it?


If you mark on your Weekly and or Daily chart where the Month opened,
you won't need to look at the monthly chart all that often?

TopGunNote 

Maybe something like this? With your footprint chart behind these charts, so it's only one click away if you want to see it? If you mark on your Weekly and or Daily chart where the Month opened, you won't need to look at the monthly chart all that often?

I'll try that template out later This is what I see right now when I open the footprint chart:



I see the daily and hourly along with it, which is pretty awesome.. I can see how this would keep me out of low probability trades.

Also, I noticed a short opportunity today with very little risk (break HOD and the trade idea is invalid), but I didn't want to go against the daily chart.. Then again, we're in responsive conditions and have the FOMC later. Was this a trade you would've taken? (Just curious!)

Zachary Standley 

I can see how this would keep me out of low probability trades. Also, I noticed a short opportunity today with very little risk (break HOD and the trade idea is invalid),

I think you answered your own question when you look back at that "Failure to take out the Overnight High"




Yes it went against the Daily, and was likely a little too soon to see the First 60 Minute candle closed following the 09:30 RTH-Open

Having said that, on a 375 Tick chart, which is roughly 1/5th of the size of the 1,600 Tick chart @wldman uses for the E-Mini.
I used the 1/5th reduction in the number of Ticks based on the lower volume (MES being roughly 1/5th the E-Mini's daily volume)

You can see a pretty low risk shot up there at the top when they fail to take out that Overnight High. But it definitely goes against the rules @wldman is trying to get us to understand.

Not sure what I'm looking at...is the chart eastern Time?

That looks like a valid 2 2 or 2 1 2 off the high.



It looks okay on the 5 er too?



But trading inside day and inside week during a significant expectation of market moving news...sort of like justifying a roll of the dice>

-Dan

wldman 

Not sure what I'm looking at...is the chart eastern Time? That looks like a valid 2 2 or 2 1 2 off the high. It looks okay on the 5 er too? But trading inside day and inside week during a significant expectation of market moving news...sort of like justifying a roll of the dice> -Dan

Yes, sorry for confusion, I live in the Eastern time zone, plus we were discussing the Micro-ES (not the Mini-ES)

Thanks for confirming what I was saying about things not being in agreement on the higher time-frames plus the "a roll of the dice" comment regarding that short.

One ray of light for me was getting my NinjaTrader-8 charts to look more like yours when I'm trying to follow your screenshot examples.

I did/do not mean to sound dismissive with the roll of the dice comment.

I want people to be aware that trading against an inside bar and/or without time frame continuity can sometimes bring challenges that I personally do not need to add to my roster of concern.

Do I do it from time to time, yes. Does it work out, sometimes it does. While I do not have data I do believe that inside bars are broadly the enemy know as "chop" and that the quicker the chart the more "choppy" costs

-Dan

TopGunNote 

Yes, sorry for confusion, I live in the Eastern time zone, plus we were discussing the Micro-ES (not the Mini-ES) Thanks for confirming what I was saying about things not being in agreement on the higher time-frames plus the "a roll of the dice" comment regarding that short. One ray of light for me was getting my NinjaTrader-8 charts to look more like yours when I'm trying to follow your screenshot examples.

A seemingly better trade that caught my eye in today's session is that first test of the RTH session low 3134.50. Price ended up reversing right at 3133.75 and hit 3138.25.. On the face of it, this seems like a higher probability trade compared to the short at HOD 3143. This is simply because of the long bias of the ES. With proper risk management, going long in these situations (before FOMC 2-sided trade days) is the better thing to do. I suspect @wldman would advise against this, though.

Kind of talking out of my ass here and theorizing.. Also, I'll be watching the FOMC..

Is that what you reference an early trade right after the RTH open?



I see that set up in the box and I could defend a long there, but it IS NOT the trade I'm looking for because it is hard against TFC especially at the dead balls low of the hourly. You can take that long there, but to me it is a "shot"



Same with this one, if this is where you meant. I see it. 2 1 2 reversal back in to 1st std dev with volume divergence. That is a trade that pre strat I'd have taken 95 out of 100 times. Now though, against TFC and largely inside I just don't need to participate...but I see it and understand for sure.

-Dan