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  1. No, I don't trade ES. It's not the volume that is the problem, but the "noise". It's correlated with so many markets, it's much harder to see what is directional trading or just spreading or hedging. I think bond markets just move a lot cleaner than stock markets, but it's certainly possible to trade them using only the order book.
  2. I am sorry you feel that way. It might seem ambiguous compared to charts because it's a lot easier posting a few charts and saying "look here, this looks like that so you do that" or "do this when this line crosses that line" but trading isn't that easy. There is so much going on. You need to take it all in and consider everything that has happened before and what happends next. I would never be able to explain every facet of it even if I wanted to. I just received a PM asking me about one of my earlier posts. I quote this post here so you get an idea of what goes on in your head when you trade this way:
  3. No, this thread is not about day trading secrets. It's just a secret to the retail world that this is how most professional traders trade that are responsible for a significant volume of the futures markets. Anyone who trades in a prop firm knows about this, so it's definitely no secret. And this thread is not about chart patterns like "hammers" or "dojis" and not about indicators like "MA" or "MACD" what your thread is clearly about. You give simple concepts like S/R turning into R/S after breakouts fancy names like "price rejection" that also is no secret to anyone. This thread is in fact only about trading with the order book and nothing else, and it does bother me that you pollute my thread with your irrelevant posts. I've read you thread and have a different opinion on many things, yet I refrained from making any posts there, so please do the same here.
  4. phantom, your thread has not much to do with what I wrote here, but still you made three posts were you tell people to read your thread. I think everyone understands now that you want everyone to read your thread. That's ok, but please stop referencing it in my thread as it adds nothing to this discussion.
  5. Every large move is made up of smaller moves. You exit the trade when the momentum slows down. How do you know when to exit your "swing" trade?
  6. I would like to make a comment on charts. I've posted earlier in this thread: I've once posted on of those charts here, but then removed it. I've just received a PM asking me for that chart. I don't mind sharing it because I don't use them anymore. So this it with a few commens that I made at that time to explain one of my trades in the Bund (FGBL): http://dl.dropbox.com/u/6237073/Volume%20Chart%20with%20Comments.PNG I called it "Volume Chart". It works a bit like P&F charts, but uses the inside market in addition to actual trades. Each box shows you the volume at the inside market (277 means 277 contracts and 1,2 means 1200 contracts). A new bar is formed when the movement of the inside market changes. Sometimes you'll see empty boxes at the top or bottom of a bar. This are prices that were bid or offered, but no one trades. It seems like it was a great idea to enter when there was an empty box, but it wasn't, because if you saw this chart in real time you didn't know in advance whether the box would stay empty. And this shows you the problem of charts. It's easy to interpret them in hindsight. Humans are always looking for visual patterns and you'll always see patterns that might be meaningless or you wouldn't be able to see in real time (like trend lines). I am not saying that charts have no value, but they are no good what most people use them for. Yes, it makes sense to look at a chart to see the general direction of the market and see where prices have been in the past. But don't try to look for patterns on that chart. Another chart I had is what I called "Time Chart". It didn't use candle sticks or bars because it wasn't based on the Open, High, Low or Close. It showed you every trade at any point in time, so it had no resolution, or you could say it had infinite resolution. Was it helpful? Yes. Do you really need it? No. Stick with the order book and you'll be fine.
  7. I don't want this to turn into a Forex beginners tutorial, so this will be my last post on this topic. Please restrict questions to the topic of this thread. Exactly. Probably some bank they ask every day for a quote. Notice that you don't even know the time when that was the price and whether it's the bid price or asked price. Yes. You may even get different quotes if you were to ask two different banks on the interbank market, but don't think you can arbitrage that. It's not guaranteed they will fill your entire order on these prices and they may change the quote after they've filled part of your order. Be aware that I don't know much about Forex other than retail traders should stay away. Ask a professional Forex trader if you really want to know how they trade.
  8. When you place an order with a retail spot forex broker then your broker does not execute on the market (by calling a bank or whatever), but just takes the other side of your trade. The prices he quotes you are not even real and there is no way to verify them because there is no centralized market. And because there is no centralized market, there is no record of how much traded when and where. Even if you found an ethical retail spot forex broker that did execute your trade on the market, you wouldn't be able to day trade, because depth he quotes you does not show you the entire market depth.
  9. I've received a few PMs asking me for that book/video. I am not going to tell you, so please don't send me anymore asking me. And you don't even need a confirmation that it's the one I mean. You will know it when you find it. There is only one as far as I know that is not all but bullshit.
  10. It only applies to futures markets and NASDAQ stocks. Does not work with stock markets that are run by specialists. Does not apply to Spot Forex, but Forex Futures. I highly recommend staying away from (Retail) Spot Forex in general, because they don't allow you trade the market, instead you trade directly against them.
  11. I've never used TT Autospreader and I don't know much about spread trading.
  12. I've once referred to a book + video by someone else that describes some of this in detail in another thread, but the reference was removed because the moderator thought I was spamming (even though I was already a forum member for 2 years and had never recommended anyone's products or services), so I won't do that again. You can probably find it if you google with the right terms, but don't even bother if you are not willing to watch the market for at least a month without charts.
  13. I am a very visual person, which was the reason that I had developed some really cool custom charts (which I don't use anymore) but that doesn't change the fact that this is how the futures markets work and that is what professional day traders look at. I already said that you have to be in the right frame of mind to understand this. I now think that charts are actually distracting. You need to be focused when day trading. If you look at your chart for just a few seconds, you might miss something important. I recommend you just try what was described near the end of the second post. Just watch the market without trying to make sense of it and see what happens. And won't see much if you just try it for a few hours. Watch it for a month. You have to put in the effort though.
  14. I appreciate the input, but I would like to ask all participants in this thread to not turn this into a volume analysis discussion or any other discussion. Read it with an open mind. If you agree, great, if you don't, then just come back a few years later when you might see it differently.
  15. You have to be in the right frame of mind to appreciate all of those posts. I remember how my believes of trading changed over time and it's remarkable how much information you filter when you read something. Everything you read that agrees with your point of view is confirmation of your believes and you disregard everything else. That's just how we humans work. I notice how I reread the same information I've already read earlier and it's like I'm reading something completely different. I had to unlearn a lot of misinformation. I wish I had never read a trading book or trading forum before starting to trade. It would have saved me so much time. Here is another great post by 86834 that emphasizes this phenomenon. I've shortened it a bit and bold the important stuff:
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