Tools of the Trade

[Soultrader]

Just wanted to post my workspace and go over the tools that I use everyday.

I use a 233 TICK candlestick charrt. I find it easier to trade with and I do not like price bars being plotted in intervals of minutes.

I use the PC ratio as a contrary tool. Whenever the PC ratio is high, this means there alot of traders are short. Therefore I will start looking for long setups. When the PC ratio is low, alot of traders are long and I will look for short setups.

The TRIN helps me gauge market internals. The trend of the TRIN and the range of the TRIN is something I look for.

The TICK is also a tool to judge market internals. However, I use this tool to time my entries along with the tape. A line on close TICK chart is a helpful tool to prevent you from chasing the markets.

I use the TAPE for entries and exits. Whenever price reaches a key pivot level, I will read the tape and see if price will hold or fold.

The premium helps me see when buy or sell program kicks in. The levels change daily and you need to adjust them manually each day. The numbers can be obtained at Program Trading, Fair Value, Index Arbitrage Values - indexArb.com.

See the attachment for the pic:

[namstrader]

thanks for sharing your desktop soultrader, do you also use workspaces for the longer term timeframes also? thanks

[Soultrader]

	Quote:	namstrader
	thanks for sharing your desktop soultrader, do you also use workspaces for the longer term timeframes also? thanks

I use a 30 minute market profile chart, a daily chart to look for key support and resistance points, and a weekly chart to see the bigger trend.

Im not a fan of 1,3,5 minute charts. I find the 233 TICK chart more useful to my style of trading.

[ezduzzit]

I am brand new to your forum and site here and wanted to say many thanks for sharing the workspace you trade. Some of it reminded me of some stuff used by Hubert Senters. You also mentioned you use a 30 minute market profile chart. Have you found market profile to be terribly useful in your trading to date for things other than determining support and resistance? It seems to me you rely heavily on order flow for entry and managing your trades. How and where did you learn to read tape? I am a newbie trader so I do appreciate any and all feedback.

[Soultrader]

Hello ezduzzit,

I first learned how to use market internals after reading some of Linda Raschke's articles, books, and interviews. Then I picked up how to use TICK hook's from Hubert Senters. I think Hubert is great at reading market internals and there is alot one can learn from him.

I also use market profile for my trading methodology. One of the main purpose for market profile in my trading is for market understanding. I like to ask questions such as, "What is the market trying to do?", "Is price being accepted within value?", "Is there price rejection outside of value?", etc.....

Market profile enables me to understand the bigger picture of the market auction. Then I can narrow it down to my setups. So in my trading, I can not trade without market profile. This is how important market profile is to me.

I think having rules to managing your trade is important. Some people may think I tend to cut my profits short but the reason why I scale out so quickly is because I would rather much prefer to eliminate risk. The last quarter position is the main portion where I try to ride it out. The rest is only there to minimize risk and ring the register.

Tape reading is something I picked up naturally. I studied Wykcoff, Livermore, and Neill's tape reading tactics. I learned early in my trading career that learning to read tape is a huge advantage in intraday trading. So I spent approx 8 months or so staring at real-time market data with just a candlestick chart and time of sales. I never plotted an indicator and all I did was practice tape reading when price reached a certain level of importance. Tape reading is not easy but if you spend enough time watching it and practicing it you will gradually understand it. I would not say I am perfect in reading tape... there are times I will get faked out. But it has helped me tremendously in timing my entry and exits.