Real Time Price Action- Clue to Puzzle?

[DbPhoenix]

I'm glad you're picking up the ball with this. I haven't traded stocks for years, though I see no reason why the principles shouldn't apply.

One caution: don't rely too heavily on the VAP. Look at where price stops rising, then where it stops falling, then at the sideways movements, much like the Darvas Box. These "corrals" are where the price and volume ranges will be found. The VAP should confirm, but it's not always as precise as some might like. You could also use the program that nic uses that provides the standard deviations from the midpoint, but you may do as well by just looking at it and keeping in mind that these are traders, not just bars.

[Tannism]

Support and Resistance AAPL

[Tannism]

Here is my follow up to AAPL with a PnF possibly showing cause to the top.

[DbPhoenix]

Does anyone trade the NQ during the day, more or less continuously?

[zeon]

	Quote:	DbPhoenix
	Does anyone trade the NQ during the day, more or less continuously?

I'm looking at the NQ and ES, mostly all of the day... I might not be trading with real money anymore, but last year I was pretty active on the ES. I'm still comparing both markets to see what makes you prefer the NQ.

[treadstone]

	Quote:	DbPhoenix
	Does anyone trade the NQ during the day, more or less continuously?

Yes, save for a short lunch time break I'm trading the NQ full time, every day.

[Tannism]

This annotation study in supply and resistance has been extremely helpful.

The range is defined from the weekly here. I am moving on to the springboard section next week. It should help with the edges and fleshing out the charts.

( Thanks DB http://www.traderslaboratory.com/forums/blogs/dbphoenix/20-the-springboard.html)

[DbPhoenix]

Thanks, Tannis. My study of springboards over the past few months (or, more accurately, renewed study) has been of great benefit. Unfortunately (or fortunately, depending on how one trades), I've found the best springboards on 1m and sub-1m charts (where all the "noise" is ). Today, for example, the springboard for the NQ took place between 1336 and 1339 at 1901.25. Not visible on a 5m chart, but there it is.

And of course if one doesn't "believe" in support and resistance, that complicates matters further.....

[Tannism]

	Quote:	DbPhoenix
	Thanks, Tannis. My study of springboards over the past few months (or, more accurately, renewed study) has been of great benefit. Unfortunately (or fortunately, depending on how one trades), I've found the best springboards on 1m and sub-1m charts (where all the "noise" is ). Today, for example, the springboard for the NQ took place between 1336 and 1339 at 1901.25. Not visible on a 5m chart, but there it is. And of course if one doesn't "believe" in support and resistance, that complicates matters further.....

I think I see it. Thank you, Db. I'll have it beside me when I look at Chapter 7 this weekend.

If you wouldn't mind, related to noise and finding equilibrium.... I believe I have set this PAV tool to show 1 standard deviation of volume on each side of the mid line of volume. By inspection, does it look like I have accomplished that? If so, this is the kind of gadget that helps train my eyes.

The mid line of volume extends on MCD. The other pink outlines show I standard deviation on each side of the midline. It looks like the volume pattern is skewed- not a normal distribution pattern.

The other setup...on ABT, the pattern is more of a normal distribution. 68% of the volume falls between the top and bottom lines which are extended on this chart. The middle line is the midline. Volume did not follow the down prices outside the channel.

Thanks again.

[DbPhoenix]

	Quote:	Tannism
	I believe I have set this PAV tool to show 1 standard deviation of volume on each side of the mid line of volume. By inspection, does it look like I have accomplished that?

Well, like I said, I just eyeball it. I see two clusters, the first from 0930 to 1010 and the second from 1015 to noon. I find it useful to make those distinctions because price may find resistance in places that would otherwise be unexpected. For instance, in this case, price may be finding resistance toward the end of the day at the top of that first cluster, whereas otherwise it looks like it's free and clear above the longer one.

Try ignoring all the tails. That may give you a sense of where the action is.

For example:

Click the image to open it up to it full size and you'll see the R line off the second box.