[sanchez]

Itrade, your welcome but I wouldn't get too carried away. It's great to hear that the concept makes sense. We all might each trade it a bit diff but if u can remember that it's an auction and stay on that train of thought I think things will only get better. Remember, sometimes the mkt tells us to stay out.....if a trade setup isn't fairly obvious (once u r comfortable with the charts, settings and scanning routine) then it probably isn't.

I need to eat and I'll post some charts later

[sanchez]

-fist pic is a daily(405 min)
-2nd chart is a daily as well but u can see where all the data comes from....back to 2008
the vol u see on the chart is for all the data pulled from nov 08.
-3rd chart is a 135 min(405/3=135) it breaks the day into 3 equal parts...the 81 min can be used as well (405/5=81) and it breaks up the day into 5 equal parts.
the vol profile on the right on this chart represents only the vol for any visible bars. My goal here is to profile the most recent swing hi/lo so I can get a better feel for the PA directly to the left of the current PA. When this and the 405 show confluence gives me a bit more conviction. Then I look at the individual profiles on a smaller TF chart(10 or 15 min)

[sanchez]

pretty big vol yest. I'd be looking at PA on any bounces either with or without vol. We've had about 1 week of movement to the downside & profit taking at some point is inevitable, especially around a dbl or triple bot. As always, LVB ( low vol bounce) into an area or resistance or 3, is always something I look for especially if we can get a vol spike on the 1 min chart to coincide with the res area.

The O/N ( overnight) POC is currently at 1039 although vol is pretty evenly distr between 1039 - 1043.
NPOC yest is 42.5 and NPOC above that is 62.5 & 71.5. Gap above is 70.5

NPOV below is 24.5 and 1007 with the first gap being at 995.75 with another NPOC 994.75

some HVA & LVA on the 405 min chart I posted....look to see where any #'s might overlap

As always, keep an eye on yest open, hi, low and IB range(hi/low of the 1st hour of trading)...yest IB is 1037.5-1055.75

Try to have these # prior to the open and have a game plan should price come into these areas....especially the areas with the most confluence. This is not about guessing which way the mkt will go but what to do when the mkt gets to an area of interest. If u use fibs or MACD, my philosophy would be the same. Have a game plan so the only thing to do when price gets to an area u r interested in is, watch PA and make a decision to enter or wait. IF PA is 1.5 points away from your area before it makes a move to where u r interested in doing business(remember this is an auction just like ebay) and the avg swing for the day,week,month is 3.5 points, would u really want to stand in front of the the move with a resting limit order? I guess it depends on what s/r levels are above/below and how much heat u can take so it is up to each trader to find their comfort level

Hope this makes sense. Good luck today. I'm off to lay a blue stone driveway...I'd rather be trading & then surfing that's for sure.

[itrade4income]

This was very helpful in what to look for. One question thou, if I understand you correctly you look at volume at price levels for past days and months HVA and LVA? And you look at these for S/R levels?

Cheers
itrade

[stpips89]

sanchez,

I am interested in your thread here. I trade forex with price action. Does it work just as well in the e-minis?

[sanchez]

Originally Posted by itrade4income »

This was very helpful in what to look for. One question thou, if I understand you correctly you look at volume at price levels for past days and months HVA and LVA? And you look at these for S/R levels?

Cheers
itrade

Yes I do but I don't have a set # of days I look back. I try to use the most recent swing hi to swing low on my 135 min chart. That helps me profile the most recent PA or most recent auction. The auction process is like any other buying /selling process, think about a dept store, flea mkt, super mkt etc it doesn't really matter. If inventory is too hi or product just isn't moving, it goes on sale....20% 30% 50% etc. once the price reduction is low enough, the consumer flocks and inventory is reduced, mission accomplished. Sometimes sale prices aren't low enough to interest the consumer and price must be reduced further. In trading this is a retest of the HVA / LVA & this is why I rarely just sit an order out at a specific price. I want to see where the consumer views value. Hundreds of years ago, It used to be trial & error but with spread sheets these days it's fairly easy find where the break point is.

this is how the s/r levels are formed as I see it

Hope this makes sense.

[sanchez]

Originally Posted by stpips89 »

sanchez,

I am interested in your thread here. I trade forex with price action. Does it work just as well in the e-minis?

Stipps, Not sure how u are using or what u consider to be "PA" but I believe that PA is evidence in every mkt. The diff with the forex mkt is that vol is not present, you can get tick vol on some platforms but it's not true vol

[sanchez]

I will not be around tomorrow, again, but I will be around in the AM on Fri