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Old 10-29-2007, 12:37 PM
Dogpile Dogpile is offline
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Random Comment Regarding Volume Distribution

meanth the title to be:

Random Comment Regarding Volume Distribution on ES (got itchy finger and posted too fast)


when you see price building at a single price and suspect the market is balancing.... wait until at LEAST 40,000 contracts trade on ES at a single price before you can expect a potential breakout.

this rule of thumb can keep you fading the moves to the std dev bands until 40k+ contracts trade. somewhere north of 40k contracts, it very often takes 43k+ --- you can stop fading and start looking for a breakout. this simple rule of thumb is just something I have noticed after staring at volume distributions for the last 3 months....

I am calling this: 'Dogpiles Random Rule #1' --- should become a mainstream classic.

seriously though, just watch and tell me if you agree. I am talking about the ES.D volume distribution --- I use Tradestation.

dog


Last edited by Soultrader; 11-23-2007 at 07:04 AM.
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