[FFTrader]

Does anyone know a good explanation of the One Time Framing concept and how to use it with the Value Area?

Lost my notes ... so any help is appreciated.

Thanks!

[OAC]

Where is Reaver ?

[Successlife]

Sorry for my Tarzan English.
One-time-frame us when the market move in olny one direcction
As a trend day
One Time Frame is when the Long Tern buyeres or seller are in control
Obviosly. the DVA and the DPOC move in the same directions of the trend days

[Reaver]

FFTrader,

I may have misunderstood the question, but yes like successlife stated...the standard definition (to my knowledge at least) of One Time Frame concept is when one time frame trader is in control...(such as the floor traders, commercials, public,etc)....two time frame market means basically that there is essentially a deadlock between two different time frame participants.

Am I on the right track as to answering what you are asking?

Now as far as using value....once again, not sure exactly what you're asking..but generally in a one time frame market, you'd be looking for breakout trades (this assumes a market is balancing, as there is no way to know value in an unbalanced market...if a market is in a one time frame control too long and is in fact trending...there really is no value).....so if I am understanding your question correctly...this would be a day you'd be looking for breakout trades at bracket extremes hoping for trend to start...

If a breakout failed, then maybe in fact you went from intially having a one time frame to a two time frame market (commercials may have stepped in and capped) so then you could look for a responsive trade, hoping for price to revert to value.....or maybe if you're lucky to the other bracket extreme (but don't push your luck too far on that one....)

I hope I answered the question you were asking....if not, try to elaborate a little on what exactly you are asking.

[FFTrader]

Hi all,

Thanks for the replies. I guess in further details, I would like to know:

1. How is OTF being used in trading ES S&P e-mini futures - AFTER one has decided or seen that there is a trend.
2. I understood it that we need to apply it as a trend following concept once we are in a trade?
3. How or when should we initiate an OTF type trade with lower risk?

Thanks.

Originally Posted by Reaver »

FFTrader,

I may have misunderstood the question, but yes like successlife stated...the standard definition (to my knowledge at least) of One Time Frame concept is when one time frame trader is in control...(such as the floor traders, commercials, public,etc)....two time frame market means basically that there is essentially a deadlock between two different time frame participants.

Am I on the right track as to answering what you are asking?

Now as far as using value....once again, not sure exactly what you're asking..but generally in a one time frame market, you'd be looking for breakout trades (this assumes a market is balancing, as there is no way to know value in an unbalanced market...if a market is in a one time frame control too long and is in fact trending...there really is no value).....so if I am understanding your question correctly...this would be a day you'd be looking for breakout trades at bracket extremes hoping for trend to start...

If a breakout failed, then maybe in fact you went from intially having a one time frame to a two time frame market (commercials may have stepped in and capped) so then you could look for a responsive trade, hoping for price to revert to value.....or maybe if you're lucky to the other bracket extreme (but don't push your luck too far on that one....)

I hope I answered the question you were asking....if not, try to elaborate a little on what exactly you are asking.

[Reaver]

Not sure I totally understand the question, especially #1 but as far as how I trade using market generated data, I wouldn't use OTF at all after determining the trend. If a market is already trending, first off, it is already an OTF market, and I am not going to mess with it. I have effectively missed the bus at this point...so I will start looking elsewhere. I am watching for a balancing market, at which point I am looking to see what is going on by the participants....that way I can potentially determine the beginning of a One Time Frame controlled market, which for me would be a breakout. Of course, that is only half of the equation as there are responsive trades that one can take which of course would require a two (or more) timeframe participant market.

As far as looking for an "OTF type trade" with lower risk, for me at least, this would entail watching the market participation and parsing the market generated data to determine which direction (if any) you favor for a breakout. Of course, you would also look at the volume/price over time distribution to determine potential risk/reward for a trade candidate.

Once again, I really don't understand your questions, as they don't really make sense ( I say that with the utmost respect as English may not be your native language, or you may be a raw beginner, which I totally understand BELIEVE ME) but I hope I helped.

Again, if this didn't answer the questions you had, let me know and I'll try again.

[FFTrader]

Thanks Reaver. Let me see if I can change the language a little. I think what I am trying to get at is the following:

"Once I am already in a trade and hopefully at the end of a balancing market period, how should I stay with a trade using the one time framing concept?"

That is, I do not know what is one time framing (lost my notes, etc.) and I am fairly new to trading (but loving it). However, I do know enough about Value Area, breakouts, trends, taking profits when in a good trade, etc.

Thanks.

Originally Posted by Reaver »

Not sure I totally understand the question, especially #1 but as far as how I trade using market generated data, I wouldn't use OTF at all after determining the trend. If a market is already trending, first off, it is already an OTF market, and I am not going to mess with it. I have effectively missed the bus at this point...so I will start looking elsewhere. I am watching for a balancing market, at which point I am looking to see what is going on by the participants....that way I can potentially determine the beginning of a One Time Frame controlled market, which for me would be a breakout. Of course, that is only half of the equation as there are responsive trades that one can take which of course would require a two (or more) timeframe participant market.

As far as looking for an "OTF type trade" with lower risk, for me at least, this would entail watching the market participation and parsing the market generated data to determine which direction (if any) you favor for a breakout. Of course, you would also look at the volume/price over time distribution to determine potential risk/reward for a trade candidate.

Once again, I really don't understand your questions, as they don't really make sense ( I say that with the utmost respect as English may not be your native language, or you may be a raw beginner, which I totally understand BELIEVE ME) but I hope I helped.

Again, if this didn't answer the questions you had, let me know and I'll try again.

[Reaver]

If you're asking what "One Time Frame Market" means: it means that one market participant group is in control....such as the public...there are the 4 Cti (Customer Type Indicator) groups: Floor, Commercials, off floor members, and Public...

Almost, if not all the time the public will be the ones to drive the price out of balance. Basically you are looking for this to happen..the transition from a multiple time frame (bracketing or ranging market) to a trending market (breakout from value)...

If you caught the trade at the right time, now you're in and the public (usually) has control...

at this point you are waiting for evidence that the One Time Frame market has started to stall....you will start to see evidence of contrary opinion in strength...usually in the form of commercial capping (Cti 2 on the LDB). Depending on your personal viewpoints and methods, you may choose to get out at this point...

If you are strictly a profile trader and do not use other market generated data, you may start to see congestion in the form of TPOs (ie where you were seeing range extension, now you are seeing multiple TPOs or rotation.) This generally entails a noticeable increase in volume as well....

This indicates the beginning of acceptance of new value...and it's a good time to get out and wait for a disagreement of value again so you can do your thing.