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Old 11-04-2009, 12:27 PM   #1

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Price and Volume Trading - Hindsight and Real

I don't know where to post this so i thought here would be fine.

Price hit resistance at 77.5, is rejected and supply significantly overwhelms demand and drives price down to 81.25 (a short-term support level that i did not have marked). 81.25 is rejected and the test is unable to make it to the low on low volume, indicating the supply required is not coming in. I took this trade and was stopped out around 88. I did not have as sound a reason for taking this trade as i have outlined here, but i had an idea that price was rejected at 81.25 and the test was a weak one.
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Old 11-04-2009, 10:12 PM   #2

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Re: Price and Volume Trading - Hindsight and Real

My levels for tomorrow:
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Old 11-05-2009, 01:22 PM   #3

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Re: Price and Volume Trading - Hindsight and Real

At the 98 to 99 level that i had marked, price offered an opportunity to go long. At 96.25 price was being supported and went up from there. Supply drove it down a few times with each time on less volume. Then at 97.00 supply ran out and the buyers had a great opportunity. This is where i could have entered. But i didn't since my ninjatrader was not open and i was in a psych101 lecture. Price tested this point again, and was supported. This could have been another entry point if i had missed the first one. I might not even have noticed these points in real-time, so it is impossible to say what i would have done. That is why i need to develop a trading plan, so that i know exactly what to look for and what i am going to do.

For one of my actual trades of the day i got in around the 1712.00 zone of resistance i had marked. Price hit the level, retraced to the previous swing high and was met with higher volume, so support came in. I took the long based on this action. I was stopped out around 1713.00. My reasoning for placing my stop here was because i thought it was a supporting point. But in hindsight it actually wasn't. Price just died off because of a lack of supply and not because of demand. After this happened, price took off, which leads me to my second trade of the day.

For my second trade i got in around 1716.75, but it was not at any important level of S/R (that i had marked anyways) so i really should not have taken it. My reasoning was because of the pullback after the sharp rise was fueled by drying up supply and demand was starting to come in. So i took a long. I watched price go up to about 22.00 and then right back down to where it hit my stop at 18.75. In hindsight, at the 22.00 high, demand wasn't coming in on the test. This could have been a signal to exit. Also, i had not noticed a possible level of S/R in the 22.00 to 24.00 zone. This could have helped in my exit as price would have been just at the bottom of this zone and demand would not have appeared to be sufficient to push price farther.

Do not be too critical of what i have laid out here. Most of this reasoning is in hindsight, so i need to work on applying it in real-time. I also need to start developing a trading plan.
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Old 11-05-2009, 04:51 PM   #4

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Re: Price and Volume Trading - Hindsight and Real

Levels for tomorrow:
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Old 11-06-2009, 11:19 AM   #5

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Re: Price and Volume Trading - Hindsight and Real

Low volume test of 13.25 (top of S/R zone i had marked) had me take a long and i got 14 as my entry. My first stop was around 13.25 and then i progressively moved it up under supporting points. When i was in the long trade, my stops weren't hit, so i didn't exit....as simple as that. I ended up being stopped out at 25.00

The short trade thrusted upwards on low volume and appeared to be unable to hold, so i took a short and got in around 30.75. I had placed my stop just above the tail end of the thrust at 32.00. I then moved it down to break even and then to the top of the S/R zone i had marked at 29.75. My stop was then hit and price eventually made a test of the high.

Edit: i did not get a chance to take a screenshot of the short trade when i got stopped out.
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Old 11-06-2009, 05:06 PM   #6

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Re: Price and Volume Trading - Hindsight and Real

Levels for Monday's trading:
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Old 11-06-2009, 05:17 PM   #7

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Re: Price and Volume Trading - Hindsight and Real

nice charts

can you put some labels or descriptions as to what the lines represent?

or notes on which lines are strategical and which lines are tactical?
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Old 11-06-2009, 05:26 PM   #8

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Re: Price and Volume Trading - Hindsight and Real

The lines represent support and resistance.
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